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    4 Replies Latest reply on Aug 18, 2011 10:16 PM by SME_ally

    Help on Private Equity

    monsheet Newbie

      Hey,

      I wanna start a Private Equity Firm. Can someone help me understand as to what exactly needed to be done?

       

      Rgds

      Sheetal

        • Help on Private Equity
          LUCKIEST Guide

          Tell us more. Who r u?? What is your education and background??

          Do you have a business plan??

            • Help on Private Equity
              monsheet Newbie

              I am Sheetal...I don't have any concrete business plan as yet but yeah, I am going to come up with one shortly...I work for a Life Insurance company as a trainer...I have done my MBA in Business Finance and I possess keen interest in Finance and Financial products....I got to know about private equity firm from one of my friends and I think this can be thought over..

               

              Rgds

              Sheetal

            • Re: Help on Private Equity
              bj.nje.4life Wayfarer

              I am a chairman and CEO of a private equity firm. Here's what I would like to say: No one wants to do anything as serious and as engaging as a private equity firm without understanding all that is involved. Though the Internet could be a start, a good education and strong foundation is the key. To acquire basic information from an internet question posting seems to be a very lazy way to enter in a field which constantly requires stedious amount of work. I am not saying that you are, but in a nutshell a private equity firm is a privately owned firm which specializes in acquiring funds through private sources and using those funds to fund different projects. The projects are generally in venture capital, growth fund, distressed funds, leveraged buyout, and mezzanine capital. These are the main ones. To reach the desired end results, the private equity firm employs different strategies that must be constantly reviewed to ensure practical approach based on the events in the market place or in real life. You need to remember that a private equity owner/founder is mostly the manager of investor's money unless he's very wealthy and has invested a substantial amount of his own wealth in the firm.

               

              My advice to you will be first get a solid education in finance and business. It does not need to require obtaing degrees, but You will definitively need to be familiar with the financial world, grow a network of potential investors, built a network of experienced and knowledgeable support financial professionals, and most of all decide your interest of specialization and focus on mazimizing all personal potential savings.

              • Re: Help on Private Equity
                SME_ally Adventurer

                adding to what bj.nje.4life has commented, pe is not a business you can start just because you went to business school. to own/run a pe firm, not only do you need a strong business acumen but also a long resume of successful deals and a group of investors who believe in your abilities and are willing to participate in your fund. most who run their own pe firms have gained extensive industry experience in m&a/corpfi from top tier investment banks (e.g. gs, ml, ms, etc).  industry contacts are important as well.

                 

                this is not to discourage you from starting a pe but just letting you know it's not easy.  if you're adamant, i suggest getting a position with an ibank first.  best of luck.