The entry level job in private equity is as an analyst (undergrad) or associate (recent MBA or masters). You would typically be involved in a combination of four activities: (1) spreadsheet analysis of the economics of a potential leveraged buyout, (2) sourcing of new deals through industry research and screening of potential buyout candidates, (3) preparation of materials for a senior partner on a potential investment target or company already subject to investment or (4) coordination of the many diligence and research items required to carry out a transaction. The work is detailed, interesting and demanding.
Hours can be long and emotions can get frayed as you adapt to both the circumstances of a deal and the vagaries of those around you. You will get an opportunity to interact with numerous law firms, bankers and consultants as you pull together the work on projects.
You will soon become an expert on the debt markets – in particular, the arrangement of syndicated bank loans and high yield bond “take outs” that are used to refinance loans in buyouts. The work can be heady stuff as you will interact directly with CEOs and their management teams often even while you are at a junior level.
The experience of how the business world works at a high level can prove invaluable in your future career.