5 Reasons for Valuations professionals to move into Private Equity

If it’s never been on your agenda, this article will uncover why it’s becoming a consideration for many Valuations specialists right now. Are you a Senior Associate or Manager with a few years’ experience under your belt? Statistics show that the number of companies receiving Private Equity is growing year-on-year, so if you’re ready to shake things up with a slight change in direction, here’s why Private Equity could be for you.

1) It’s a great space to be in 

Private Equity’s an exciting space to work in at the moment. You’ll be using your Valuations capabilities to do far more than help companies make every day financial evaluations. You’ll play a central role in supporting businesses to make potentially business-changing decisions for buying and selling companies and establishing strategic investment partnerships.

Private Equity’s not for the faint-hearted, so you’ll likely be part of a team of competitive, high achievers with plenty of opportunities to grow and learn, from and with the best.

If you’re ready to make an impression in your workplace, Private Equity’s a great place to make your mark.

2) Work internally, not externally

Valuation specialists working in Private Equity are in-house specialists providing instrumental support to colleagues. Armed with hard data and analysis, you’ll be the trusted advisor of company founders and leaders. And a huge advantage is that you’ll offer ongoing, long-term value to your business.

Rather than being involved in more siloed financial activities, those in Private Equity enjoy involvement in entire end-to-end processes. They get to see results, realise their impact on the business and celebrate achievements as a team. In short, PE is really rewarding.

SHRM cited two of the top five contributors to job satisfaction as ‘trust between employees and senior management’ and ‘opportunities to use skills and abilities in your work.’ An internal Valuations role in a Private Equity environment will almost certainly provide you with both.

3) The industry’s booming

Private Equity firms play an important role in the economy. And that’s perhaps why there’s been exponential growth in the industry in the past few years.

Global consultancy Bain & Company reported that “Private equity blew the doors off in 2021 as trillions in pandemic-related stimulus produced a historic surge in dealmaking and exits.” In addition to that, McKinsey has shared data that shows a consistent upsurge in Private Equity activity across almost every global region over the past few years.

In an interview with London Business School, Dan Gogel, Chairman of Clayton, Dubilier & Rice LLC – and an investor with more than 30 years’ experience – commented, “If you believe in the structural advantages that PE has over public companies, there’s no reason why the industry won’t do very well.”

So, the future of Private Equity looks to be extensive and healthy. Great news if you’re a Valuations professional looking for job security and a role with longevity.

4) Enjoy a higher salary

Private Equity’s an industry to break into if you want to earn well. You’ll be involved in the whole deal process, and not just back-end valuations as and when a company requests them. Which means you’re a key player in your line up and a highly valuable asset to your business.

An article published by PE training specialists, Interview Private Equity, suggests that “Mega funds may have billions under management leaving hundreds of millions just for employee compensation. Since running a PE fund isn’t exactly a capital-intensive business (you only need laptops, phones, and desks), employees end up getting paid a lot.”

The same feature further reveals that small firms can have just a dozen staff and even the largest mega cap funds only tend to have a headcount of around 150. So, it makes sense that there’s abundant potential to earn highly in Private Equity.

And remember, such capital-rich environments provide additional scope for better bonus schemes too. 

5) Greater variety

Unlike more traditional Valuations roles which involve only finance-related responsibilities, you’ll enjoy an interesting blend of finance, plus operations. Rather than using repetitive models for large volumes of external clients, when you’re working in PE, you’ll be continuously adapting your internal Valuations processes in accordance with market conditions.

That means no two days are ever the same. Combined with a fast pace (particularly at quarter end) and a team of dynamic, ambitious individuals, a career in Private Equity is a great choice for many of today’s go-getting Valuations specialists seeking a fresh challenge.

Are you working in Valuations and keen to learn more about making the transition into Private Equity? At Apollo Solutions, we have partnerships with some of the most exciting PE firms who are eager to speak with ambitious individuals with your skillset.

If you’re looking for a new venture and think Private Equity could be for you, contact us today for a confidential chat.