How bad are hours in private equity?
You usually get into the office around 9am and may leave between 7pm-9pm depending on what you're working on. You may work some weekends (or part of a weekend) depending on if you are on an active deal, but on average, weekends are your own personal time.
Investors need to know they can rely on what you say and the analysis you're producing. The average during a busy time for associates and analysts is usually around ~60-70 hours per week. But it's all dependent on how many deals and investments are on the go. The above hours will vary based on if there's a live deal.
In private equity, you'll also be responsible for a lot of different tasks. The deal teams are lean and your decisions will have a high degree of permanence, which is why I'd say the stress level is overall higher in private equity than in banking. Very importantly, there's also no one around to check your work.
As for hours, both private equity and investment banking can be demanding careers. However, investment bankers tend to work longer hours, often working late into the night and on weekends. Private equity firms also tend to have a more relaxed work environment and offer more flexible hours.
Work-life balance is a challenge for many professionals, but especially for those in private equity (PE). PE is a demanding and competitive field that requires long hours, frequent travel, and high performance under pressure.
Private equity investors also face greater market risk with their investments compared to traditional investments since there's no guarantee that any of the small companies in which private equity firms invest will grow at all.
At many smaller funds and middle-market funds, you can expect to work 60-70 hours per week, mostly on weekdays, with occasional weekend work when deals heat up.
Unlike in a hedge fund, where an investor could be responsible for dozens of positions and the law of large numbers will help one out, private equity investors do so few deals at a time that a bad deal or two could significantly hurt your career.
Private Equity Career Training
PE firms are small, tight-knit, and full of extremely smart and highly motivated people.
The “all-in” combined salary is approximately $275k to $390k at top PE firms, but this figure can be much lower for smaller-sized funds and exceed $400k for firms with reputations for being the highest-paying (e.g. Apollo Global).
Why does private equity pay so much?
Investment bankers make money by advising companies, structuring sales, raising capital, and taking a percentage fee on each transaction. By contrast, private equity firms make money by exiting their investments. They try to sell the companies at a much higher price than what they paid for them.
| Position | Typical Time in Role | Bonus |
|---|---|---|
| Associate | 2 – 3 Years | $50k – $150k |
| Senior Associate | 2 – 3 Years | $100k – $200k |
| Vice President | 3 – 4 Years | $200k – $500k |
| Director | 3 – 4 Years | $250k – $600k |
After two years in private equity you can pursue a MBA and then return to private equity. A post MBA associate may return to their previous firm or move to another firm. Following that, the post MBA associate would seek a vice president position if the end goal is to stay in private equity and pursue the partner track.
Private-equity firms typically run leaner operations than banks and so have less need to cut jobs during slowdowns. But some have laid off about 5% to 15% of their staff, said Sasha Jensen, founder and chief executive of Jensen Partners, an executive-search firm for alternative-asset managers.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $244,500 | $20,375 |
| 75th Percentile | $190,000 | $15,833 |
| Average | $157,532 | $13,127 |
| 25th Percentile | $115,000 | $9,583 |
Both investment banking and private equity are demanding careers that require long working hours, although private equity firms tend to have a more relaxed work environment and offer a more flexible schedule.
Private equity comes with a few disadvantages. These include increased risk in the types of transactions, the difficulty to acquire a business, the difficulty to grow a business, and the difficulty to sell a business.
With this power, however, comes greater accountability, as they're more deeply involved as company shareholders. This can lead to greater stress in private equity than in consulting firms.
| State | Annual Salary | Monthly Pay |
|---|---|---|
| California | $89,038 | $7,419 |
| Maryland | $88,832 | $7,402 |
| Tennessee | $88,240 | $7,353 |
| Utah | $87,969 | $7,330 |
In the end, though, I realized I wanted to broaden my experience beyond finance (for now) and gain operating experience and start a company. It's pretty hard to get that in private equity, which is why I left.
Is it harder to get into private equity?
Yes! 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.
It's no secret that private equity firms have a bad reputation. They're often seen as ruthless vultures that swoop in to buy up struggling companies, slash costs, and then sell them off for a profit.
The 22 members on the latest Forbes 400 list who made their fortunes in private equity are now worth a combined $153.7 billion. Leading the list this year is Stephen Schwarzman, chairman and CEO of Blackstone Group, with a net worth of $37.4 billion.
Compared to other jobs in the financial space, private equity roles can provide a more balanced lifestyle, potential for better pay and more engaging, connected work. Private equity is growing in popularity, and an increasing number of college graduates or financial professionals are looking to break into the space.
Highest salary that a Private Equity Associate can earn is ₹45.0 Lakhs per year (₹3.8L per month). How does Private Equity Associate Salary in India change with experience? An Entry Level Private Equity Associate with less than three years of experience earns an average salary of ₹15.4 Lakhs per year.
