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Megara asked in Business & FinanceInvesting · 10 years ago

What makes you interested private equity?

I have an interview with a private equity firm. I need to formulate a good answer to why I'm interested in private equity, yet I don't have much background or experience in this field, so I'm wondering what makes many people interested in this field, why they choose private equity over other areas (e.g., venture capital). Any advice would be much appreciated.

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  • 10 years ago
    Favorite Answer

    First off, venture capital is a FORM of private equity investing <important to know, as far as your potential employer is concerned.

    Secondly, PE, IMO, is exciting! Getting in on the ground floor, wading through a new/developing company's financials, business and marketing plans, etc. and making projections about them is a challenge...and who doesn't like a challenge!

    I suggest you read the attached link to get some background info on PE. It will not only help you answer the question you posed, but it will also help show your potential employer that you have some clues about the rewards and pitfalls of PE investing and analysis.

    http://en.wikipedia.org/wiki/History_of_private_eq...

    Good luck in your interview!...

  • Anonymous
    5 years ago

    some thing the cons do not seem to understand is that government isn't a business enterprise. The on a regular basis practice did a hilarious section on what it may be like if the government develop into run like a business enterprise, many conservative states could be "fired" because of the fact they are taking extra from the federal government than they are placing back in.

  • Anonymous
    10 years ago

    For example you can say this:

    it is generally more close to the business (even for mezzanine financing), you participate to the deal, you have to forecast businesses futur revenues with financing costs.

    You have access to CEO and CFO directly (it is rarely the case in other types of investments).

    Rewards can be great if the company is well financed and working well.

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