Private equity: No longer a good career move?

Doomsayers are prophesying the imminent bursting of the over-leveraged private equity bubble. Is it time to it time to give the industry a wide berth?

Not according to recruiters. It doesnít matter whether the market collapses or rises,íí says Jon Michel, founder of recruiter Jon Michel. PE people are the smartest people in finance, theyíre always one step ahead. If they buy in a rising market, they profit, if they buy in a slump, they build the asset up, and profit. Brains and capital are a potent mix.

Thereís no sign of job creation slackening ñ at least not yet. Michel tells eFinancialCareers that there were 30% to 40% more PE jobs advertised in Australia in 2006 than in 2005 and he expects the same for 2007.

Only the cream need apply though. You need a 99.9% academic record, first-class honours, probably a management consultancy background, but the competition is fierce. PE firms cherry-pick, and those candidates are really, really well bid,íí says Oliver Darkes at recruiter Carmichael Fisher.

The pay is luscious. Neil Phillips, manager permanent recruitment at Hudson, says the base pay for two to five year analysts is about AU$80k to AU$100k, often with 100% bonuses on top. Michel says pay varies but the big kicker, the x factor, is the ëcarryí, the pay out for a deal done. This is in addition to base and bonus is usually paid every few years once a fund has exited all its investments.

And, when you leave, everyone wants you. You canít lose, according to Michel ñ even if the industry goes go belly-up.