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Ten reasons to work in private equity
June 4, 2008
I plan to write in my FT column this week about private equity buyouts and the aftermath of loose financing such as covenant-light loans and payment-in-kind bonds.
For those who cannot wait, here is the list of 10 tongue-in-cheek reasons given by David Rubenstein, a co-founder of the Carlyle Group, for why private equity is still a great career.
Mr Rubenstein included his list in a recent presentation on the industry. The public controversy surrounding private equity has clearly not made him lose his sense of humour.
His reasons are:
1. There is no educational requirement - anyone can get into the business, no barrier to entry.
2. You don’t have to keep time sheets or fill out insurance reimbursement forms.
3. Lack of clear skills or a high IQ is not a handicap - it may be a plus.
4. You get to hire lawyers and economists, the people who were smarter than you in college.
5. Your ability to make charitable contributions will get you invited to much higher class parties (and get your children into higher class colleges).
6. Someone pays you 20 per cent (if not 25 per cent or more) of the profits on their money.
7. You will have every reason not to forget to negotiate a pre-nuptual agreement.
8. Private equity and hedge fund professionals live to 90 - no reported heart attacks.
9. There is no random steroid testing.
10. You can afford better grade assisted living arrangements.
Are the banks going to eat PE’s lunch? Deutsche Bank is setting up its own Acquisition Vehicle (a SPAC) focusing in initially on specific sectors esp. in the German economy, and this vehicle will be floated. This is probably a portent for the future and no doubt other banks, life insurance companies in Germany and elsewhere will do the same as DB.
http://www.ariva.de/IPO_Deutsche_Bank_will_Akquisitionsvehikel_an_die_Boerse_bringen_n2645861
Posted by: J.J. | June 4th, 2008 at 7:08 am | Report this commentExcellent reasons!
Posted by: Milan | June 4th, 2008 at 1:50 pm | Report this commentYou can be proud of yourself for actually not doing anything useful for the human race and getting paid 3000 times the salary of road sweeper,garbage collector,mortuary attendant,potato washer and finally you can afford to buy really good and expensive coffin
Posted by: Chunfla Burlbe | June 4th, 2008 at 2:18 pm | Report this commentInteresting times ahead for the private equity club.
10 great reasons
Posted by: Cricket Bats | September 24th, 2008 at 2:58 pm | Report this comment