A private equity firm is an investment company that provides private backing and makes investments start-up or operating companies through various investment strategies. Private equity firms have attracted the best and brightest in the corporate world, including top performers from the top companies on the Fortune 500 or the FTSE 100. Top performers at accounting and law firms are sought after due to the transaction support work required to complete the deal.
Dell and financial partner Silver Lake orchestrated a monster $67 billion public to private buyout which is the largest tech deal ever. We also saw JAB Holding continue its consolidation of the coffee industry with its $14.2 billion acquisition of Keurig, and it also added Krispy Kreme to its portfolio for a sweet $1.35 billion.
These were some of the top mergers and acquisitions of 2016 and its not just the colossal figures which attract people to these companies its the challenge. Investment banking is essentially advising companies on what to acquire and invest in, whereas, private equity professionals take risks by directly investing money in companies. A private equity job is not just number crunching and pitching ideas, it also requires finding attractive potential targets, understanding key dynamics in various industries, understanding how companies are run and actually helping to organise the management of those companies.