Job Description-Private Equity and Venture Capital

[agk99]

Private Equity-Leveraged Finance & Venture Capital(創業投資)

據我所知，除非是原本就是搞這一行的，同時有人脈，有經驗的，可能唸完MBA就可以直接找到相關工作，否則，一般MBA找這種工作的機會不大。

Venture Capital firms take equity positions in start-up companies prior to an IPO. These firms provide financial expertise, industry expertise and a networks of contacts to their portfolio companies to help them grow. An associate with a venture capital firm will be responsible for reviewing company business plans, performing industry analysis to determine the market size of the opportunity, evaluating management's capabilities, developing valuation models for the firm, conducting the due diligence on investment opportunities (reviewing strategic partnership agreements, calling references, reviewing management's projections and the validity of the assumptions driving those projections, etc.), and monitoring/advising portfolio companies.

Leveraged Buyout firms take equity positions in firms that results in the purchase of a significant portion or majority control of the company. These transactions are typically highly leveraged and utilize high yield debt extensively. The goal of the LBO is to restructure the company in a fashion that it is more valuable than at the time of purchase. This restructuring can come in many different forms but always requires a considerable amount of financial engineering and capital structure manipulation.

An associate will be extensively involved in developing different financial models (cash flow projections, asset sale projections, break up valuations, capital structure implications on cash flows and rates of return, etc.), conducting the due diligence on companies (calling references on proposed management team, reviewing projections and the validity of the assumptions driving those projections, evaluating contingent liability exposure, calling potential buyers of different business units that could be spun off, working with the auditors, etc.) and monitoring portfolio companies.

[習慣仔]

Hi AGK! 久仰大名 you are a legend ;-)

I'd ask your opinion particularly on this subject:
many people get MBA expecting to change their career (country, industry or function) so I assume that B-schools resources and its alumni network should be valuable for their MBA students.

Supposedly Wharton, Columbia, Stanford, etc. have large base of alumni in Private Equity industry or investment community in general, would you suggest to first land a job from iBankers (JPM, GS, CSFB, etc.) who are mostly on "deal-selling side" and after several years switch to private equity or VC (i.e."buyers-side")? Is this track reasonable or we might think of jump inot PE/VC directly?

I have background mostly in finance & accounting in MNCs (10 yrs) and in past year I get chance to be involved in M&A activities; now I am considering whether PE/VC can be a career I can really "fit in" and "stand out", which in turn will drive my choice of schools to apply.

Thanks in advance for sheding some lights ;-)