Why investment bankers want to work in private equity

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Why investment bankers want to work in private equity

While investment banking is a challenging and rewarding career, many investment bankers have their sights set on working in private equity. In this article, we will explore why investment bankers are so eager to transition from investment banking to private equity.
Investment bankers are highly motivated professionals who are constantly seeking new challenges and opportunities to advance their careers. While investment banking is a challenging and rewarding career, many investment bankers have their sights set on working in private equity. In this article, we will explore why investment bankers are so eager to transition from investment banking to private equity.
  1. Greater control over investment decisions: In investment banking, investment bankers are involved in the transaction process and often have limited control over the actual investment decisions. In private equity, the investment bankers have much greater control over the investment decisions and can be involved in the entire investment process, from sourcing deals to managing portfolio companies.

  2. Long-term focus: Investment banking is known for its fast pace and short-term focus. Private equity, on the other hand, has a long-term focus and allows investment bankers to be more strategic in their thinking. Private equity firms are focused on creating long-term value for their portfolio companies and are more concerned with the success of the companies they invest in over the long-term.

  3. Higher compensation: Private equity is known for its attractive compensation structure, with higher salaries, bonuses, and carried interest. Investment bankers who transition to private equity can expect to earn a higher compensation package, which is often tied to the performance of the private equity firm and its portfolio companies.

  4. Entrepreneurial opportunity: Private equity provides investment bankers with the opportunity to be more entrepreneurial and take on greater responsibility. They have the chance to lead and manage companies, and have a direct impact on the success of the portfolio companies.

  5. More diverse skill set: Investment bankers who work in private equity can develop a more diverse skill set, including operations, finance, and management skills. This allows investment bankers to broaden their expertise and take on more complex challenges.

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On the whole, investment bankers are drawn to private equity for its long-term focus, greater control over investment decisions, higher compensation, entrepreneurial opportunities, and the opportunity to develop a more diverse skill set. The transition from investment banking to private equity is not an easy one, but it offers investment bankers the chance to advance their careers and make a greater impact in the investment world.

About Fram Search

Established in 2010 by Simon Roderick, a recruiter with 20 years City recruitment experience, Fram Search is a specialist financial services recruitment consultancy. We focus on permanent and interim recruitment in the UK & internationally.

Our Private Equity & VC practice works with firms operating in private equity, venture capital, private equity real estate, secondaries, and fund of funds markets. Covering investment professionals, IR & marketing, finance, operations, and legal & compliance.

We provide high quality contingent and retained recruitment services to boutiques and global brands. We have long established relationships and access to deep talent pools. Fram takes a highly consultative approach, and we have a quality over quantity ethos. We are proud that our contingent fill rate is nearly three the industry average and we augment our retained search methodology with rigorous psychometric testing. Champions of diversity & inclusion, all staff have undertaken unconscious bias training.

Please contact us on 01525 864 372 / [email protected] to learn more.

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