Private equity firms like to hire winners. They want the elite investment bankers and graduates who can demonstrate the sort of qualities that will set them apart.
This also means getting a top-class degree from,the ‘right’ – read top – university. But an undergraduate degree is one thing. How will professional certifications and Masters' degrees help your chances?
The biggest boon to a private equity job application, perhaps surprisingly, is a Masters in Finance degree. Our figures, based on the people on the CV database, suggest that 27% of private equity professionals possess a Masters degree, compared to 23% with an MBA – the more traditional method of getting a private equity job.
Masters in Finance degrees are increasingly important for securing an investment or reporting job in private equity,” says a managing director at a Private Equity Firm. “MBAs are still important for associate level hires, but they need to becombined with experience– whether that’s PE or investment banking.”
Once again, the CFA also ranks relatively high in the alternative investment sector.22% ofassetmanagementprofessionalsonthe database have studied the CFA, and this figure is 18% in private equity.
A lot of limited partner private equity firms will hire undergraduates and then put them through the CFA. It’s rare for direct investment firms to do the same. However, we also see a lot of junior investment bankers with CFA level one, as it shows both technical knowledge and evidence of commitment.”
Mid-market private equity firms also tend to favor those with an ACA accounting qualification – who often come from the Big Four – largely because senior partners at these firms also possess the qualification. However, our findings suggest that just 2% of private equity professionals have an ACA.
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FAQs
Hi there, not critical, and the majority of consultants in PE practices don't have it. If you consider only getting a CFA to land consulting jobs, I'd say the sustantial effort you have to put in to get it is not worth the impact.
Can you get into private equity with ACA? ›
Earning such certifications can expand your knowledge base and can give you a competitive edge over other candidates. Some of the best certifications for an aspiring private equity associate to achieve include: Associate Chartered Accountant (ACA)
Is CFA or MBA better for private equity? ›
The MBA is better suited to people who are more interested in general management and executive leadership. MBA career paths tend to be more popular with people in investment banking, private equity, and corporate development. MBA programs typically include a lot of networking, which is one of their main benefits.
What professional qualifications do you need for private equity? ›
Private equity firms usually look for entry-level associates with at least two years of experience within the banking industry. Investment bankers usually follow the PE firm career path as their next job and typically have a bachelor's degree in finance, accounting, economics, and other related fields.
Is an MBA necessary for private equity? ›
Although most large private equity firms look exclusively for job candidates with an MBA, you can still get into a smaller firm without one. Smaller firms prefer candidates with an MBA, but it's not always a requirement.
What master's is best for private equity? ›
There are also Master's degrees in other areas, like Economics or Management, but you're best off with Finance or the Finance track if you want the types of roles featured on this site (investment banking, private equity, corporate development, etc.).
How to get into private equity after an MBA? ›
Getting into private equity directly after an MBA is nearly impossible unless you've done investment banking or private equity before the MBA. You could complete the MBA, use it to win a full-time investment banking job, and then recruit for private equity roles…
What degree is needed for private equity? ›
Many people who work in private equity have master's degrees in finance or MBAs from top institutions, so even if you can't directly enter the field after graduation it can still help you later on, after accumulating a few years of experience in a related field.
Is ACA the best accounting qualification? ›
If you decide on a career in accounting or auditing, the ACA qualification is most applicable. Alternatively, the ACCA certification is most suitable for those wanting a career in charities, public practice, financial services, management accounting or financial management.
What is the best MBA for private equity jobs? ›
While many business schools can help their MBA graduates pursue a finance industry career, the M7 business schools (Stanford GSB, HBS, Wharton, CBS, Booth, Kellogg and Sloan) continue to have a strong track record of helping their graduates gain buy-side jobs in investment management, private equity and venture capital ...
The answers depend on your career goals. An MBA and CFA can complement each other, so earning both is worth consideration. An MBA program provides a broader education than the CFA program. The CFA focuses more on detailed topics like investment management.
What is the average age to get a CFA? ›
The average age of a CFA level I test taker was 26.6 in 2018.
What is the best career path to private equity? ›
The PE Career Path
- Step 1: Get Your Undergraduate Degree. Private equity firms usually seek someone with a strong sense of numbers. ...
- Step 2: Find an Internship Within PE. ...
- Step 3: Post-Undergrad, Find an Entry-Level Financial Position. ...
- Step 4: Get an MBA or MF. ...
- Step 5: Apply to Private Equity Firms.
Private equity is one of the most competitive jobs to get – period. Not just in finance, but across the board. Private equity firms have very specific requirements for their hire candidates, both for entry-level analyst positions and for higher-level job openings.
What certifications do you need to work in private equity? ›
What Are the Best Certifications for Getting Into Private Equity?
- Certified Financial Planner (CFP)
- Financial Risk Manager (FRM)
- Chartered Financial Analyst (CFA)
- Chartered Alternative Investment Analyst (CAIA)
- Chartered Private Equity Professional (CPEP)
- Chartered Private Equity Analyst (CPEA)
Other Qualifications for Equity Research Analysts
The preeminent professional qualification for equity research analysts and others working in securities research is the Chartered Financial Analyst (CFA) designation, which is awarded by the CFA Institute.
Is CFA useful for private banking? ›
Once the money is in the private bank there are other teammates who will interact with the client. For investment management, these professionals are portfolio managers (although not all private banks use that term), and for them the CFA designation is very important.
Do you need a CFA in investment banking? ›
A bachelor's degree and or a master's degree in a related field is often required to become an investment banker. Investment bankers often start their careers as analysts and do so by earning the CFA charter. Independent investment banks often pay higher bonuses to entry-level investment bankers.
What is required for private equity? ›
Getting enough work experience and then completing your master's degree is usually a good way to get into private equity, but it requires careful planning, as most top private equity firms prefer to hire entry-level employees that are as young as possible, so they have much time to gain experience and fulfill their ...
