Private equity largely refers to the investment of funds raised on the private markets, in the equity of private companies. The capital is provided by institutional investors and wealthy individuals who invest into a private equity fund, which is then managed by the private equity firm. The main categories of private equity investment include venture capital, growth capital, leveraged buyouts, angel investing and mezzanine capital. The private equity firm will exercise control over the investees' management teams, and implement structural changes to enhance the value at "exit". The "exit" event is typically a trade sale, flotation or secondary buy-out.

The Private equity marketplace is one of the fastest growing sectors in the economy, and now circa 20% of the UK workforce is employed by companies under private equity ownership.

Is it for you?
Private equity firms typically battle with investment banks and hedge funds for people with the skill sets and backgrounds they need. The work is very challenging, but also extremely rewarding. The main entry points into private equity are from investment banks, accountancy firms, management consulting and MBA programmes.

Career Prospects
The career prospects in private equity are excellent, as it provides such a wide range of analytical, strategic and commercial business exposure. There is the potential to make huge sums of money at more senior levels, and the experience gained can lead professionals into almost any area of business.