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THE COMPARISON BETWEEN PRIVATE EQUITY & INVESTMENT BANKING

investment banking career perform three tasks which revolve around creating a pitch book, doing the administrative work as well as modelling. In comparison, those employed in the private equity industry undergo less standardization. The four major areas in which an associate in this field could be expected to work are fundraising, exit strategies, handling the portfolios of partner companies and making investments.

The Lifestyle

We all know, that the investment banking industry is infamous for the tiring hours that it pulls out of its professionals literally grilling them day-in-day-out. But this provides a great opportunity, for an individual to develop deep bonds with their fellow associates. Many from the higher stratum of the leadership would admit to the fact that if there is one place other than their colleges that they have friends at, then it is their investment banking firm.

However, the private equity industry is clearly the better option in this regard. Considering the bigger picture, Private equity associates are much closer to the action than their Investment Banking counterparts. They know that the greater part of their remuneration depends on how well does their investment pay-off Salary.

Salary

To draw a definitive conclusion, one can’t specifically say which is better of the two. As discussed above, they both have their pros and cons. It comes down to the kind of works that you want to be engaged in. Still, for those needing a word of advice, investment banking puts a person at the helm of the financial world, allowing them to earn the kind of compensation that they desire.

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