Jan 21, 2007

Private Equity new dream jobs for MBA

BusinessWeek reports that the latest jobs that MBAs in the US are lusting for is the chance to earn $450,000 in private equity firms !
As always, MBAs chase the money. And nowhere are the pay packages more regal than in the land of private equity. First-year compensation of $300,000 for top-tier talent at a Wall Street investment bank doesn't seem too shabby--until you consider that thoroughbred MBAs joining the largest private equity shops command base salaries and bonuses as high as $450,000. Add to that, of course, the real payoff: the equity. "More equity is flowing downtream to these new hires," says Brian Korb, a partner at New York executive search firm Glocap Search, co-publisher of the 2007 Private Equity Compensation Report. "Especially for the all-stars. It's just like in sports."

There's just one hitch: There aren't as many private equity jobs out there as you might think. While many of the biggest funds will hire about 20% more B-school grads this year, says Korb, demand for such jobs outstrips supply by a factor of about five to one. And the positions typically go to those with prior experience. A taste of just how cloistered this world is: The mighty Carlyle Group sent co-founder David M. Rubenstein (BW--Jan. 15) to Harvard Business School in October to woo finance stars over dinner at a gourmet restaurant. But Carlyle's 50% jump in hiring? It amounted to a mere seven spots, says human resources manager Annie Paydar.
Hmm, anybody have any idea what private equity firms exist in India, if any? (added later: found a list here)

Two Indian hot shot professionals who did head for private equity firms are ex-Wipro CEO Vivek Paul (who joined Texas Pacific) and ex-Microsoft India head Rajiv Kaul who joined Actis.