What does a Private Equity Analyst do ?
A Private Equity Analyst identifies, analyzes, structures, and recommends the best investment opportunities for Private Equity funds. For this, they utilize their knowledge in financial engineering as well as their analytical and synthesis skills.
They also participate in the development of legal documentation and assist Investment Directors in monitoring investments. Becoming a Private Equity Analyst requires undergoing a demanding and highly professional training at a BAC+5 level in Finance, such as the Corporate Finance and Financial Engineering Specialization at Paris Dauphine-PSL University.
Areas of work of a Private Equity Analyst
A Private Equity Analyst conducts market surveillance and financial strategy analyses. For each project, they verify the accuracy of the performances announced by the studied company. They also provide a critical perspective on the managerial strategy in target companies, which can be decisive in a company's growth and therefore in its future returns. A Private Equity Analyst is employed by an investment fund.
Daily tasks
On a daily basis, a Private Equity Analyst carries out the following tasks:
- Collect financial and strategic data on the company and its market.
- Model financial structures.
- Precisely evaluate the risks incurred.
- Prepare and present investment notes in committee.
- Structure legal and financing documents.
- Participate in negotiations.
- Support the management of portfolio companies.
- Assist business managers and investment directors in monitoring investments over long cycles (5 to 6 years).
Salaries and career path
The median salary for a financial analyst is €40,000 gross per year. A Private Equity Analyst usually receives a performance-related bonus in addition to their salary. 3 to 5 years of experience in finance (strategy consulting or M&A) are necessary to obtain a position in a private equity fund.
At the beginning of their career, a junior analyst assists more experienced analysts in preparing files. Subsequently, they will have the opportunity to manage their own portfolio of companies before moving on to positions such as Director of Participations, Investment Director, and then Partner, Associate Director.
Some Private Equity Analysts pursue an international career or establish their own investment funds leveraging their professional network. They may also specialize in a specific market such as infrastructure funds, real estate, technology, or turnaround companies.
Required skills
- Excellent knowledge in finance, regulation, and taxation to read and interpret data and financial reports.
- Commercial, human, and relational abilities.
- Intellectual curiosity.
- Rigorous financial analysis.
- Perseverance.
- Teamwork.
- Proficiency in English.
What studies to become a Private Equity Analyst?
Becoming a Private Equity Analyst requires solid knowledge in finance, corporate law, and taxation. Private Equity investment funds require at least a BAC+5 level. Masters in Finance provide excellent training in financial techniques through professionalizing modules. These courses develop professional profiles highly sought after by financing and private equity banks.
Training to become a Private Equity Analyst at Paris Dauphine-PSL University: Master in Finance
Dauphine offers a Master in Finance and a specialization in "Corporate Finance and Financial Engineering" designed to start and succeed in a career as a Private Equity Analyst.
Future executives acquire their know-how and interpersonal skills through a first generalist year and a second professional year thanks to full immersion in the business with very high-level educational speakers (CEO, CFO). Prestigious partners (EY, Société Générale) contribute to the training and offer multiple career opportunities both in France and abroad.