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News and insights from Private Equity Jobs.
Private Equity vs Corporate Development
Private equity buys companies with limited-partner capital and a small deal team. Corporate development buys for one company from the balance sheet. Hours, pay, and the bridge between them follow from that.
Management Buyout (MBO)
A management buyout (MBO) is when sitting managers buy the company they run, usually with a private equity sponsor and debt on the business. Here is how an MBO differs from a sponsor-led LBO and a management buy-in.
What Does a Private Equity Managing Director Do
A private equity managing director or partner is the person who raises the next fund, covers limited partners, and votes whether the firm buys. The title on the card is not always the same as equity in the general partner. The same seniority is a different job at a megafund, a middle-market shop, and a growth fund.
What Is a Confidential Information Memorandum (CIM) in Private Equity
A confidential information memorandum is the sell-side bank's book on a company for sale. A buyout associate reads it after the NDA. It is long enough to support a first-round bid and optimistic enough that treating the numbers as proven is how a file gets dishonest.
Going Private
A listed company goes private when a buyer acquires the public shares and delists the stock. Sponsor deals are public-to-private LBOs. How the path works, what Rule 13e-3 covers, and what shareholders are paid.
Private Equity vs Consulting
A consulting firm sells advice with a large junior bench. A private equity fund buys companies with a small deal team. Hours, pay, and which interview you sit follow from that.
What Does a Private Equity Principal Do
A private equity principal is supposed to find the company, win the partnership's buy-in, and sit on the board after the close. They still do not write the check. The same title is a different job at a megafund, a middle-market shop, and a growth fund.
Add-On Acquisition in Private Equity
An add-on acquisition is the purchase of a smaller company by a business a private equity fund already owns. The platform is the buyer. Multiple arbitrage is real only if the combined company actually trades like the platform.
Sources and Uses in an LBO: The Closing Table
Sources and uses is the closing table for a leveraged buyout. Uses list what must be funded. Sources list who funds it. The fund's cheque is the plug, and that plug is the denominator for IRR and MOIC.
What Is an IC Memo in Private Equity
An investment committee memo is the written case a private equity deal team puts in front of the partners who can approve buying a company. The associate drafts it. The committee votes.
What Does a Private Equity Analyst Do
A private equity analyst is hired out of undergrad and owns pieces of a live deal: comps, data-room hygiene, first-pass research, model updates. They do not coordinate the process or vote. Many large buyout shops skip the title.
What Does a Private Equity Vice President Do
A private equity vice president keeps a live deal moving: the workstreams, the advisors, the memo. They recommend a price and a structure. They do not write the check. The same title is a different job at a megafund, a middle-market shop, and a growth fund.