Maybe it’s finally time to start seeing the light at the end of the tunnel. In fact, more than half of private equity leaders surveyed recently by Celerant Consulting felt that an economic recovery is no more than 18 months away.
In a survey of more than 220 senior executives across Europe and the United States, carried out by the Economist Intelligence Unit, 53% of private equity leaders said the market should return to its pre-credit crunch levels within 18 months. U.S executives were more optimistic than their European counterparts, while UK and German respondents felt a full recovery would take a bit longer.
Despite that seemingly rosy outlook, more than three quarters of all respondents still felt the market has further to fall. And that the volume and value of private equity deals will shrink over the next year. Many are sitting on the sidelines, waiting for more attractive deals to show up sometime in late 2009 or early 2010.
Downward pressure on CEO compensation packages is starting to have an effect on where these top executives want to work, reports biotech website TMCNet.com
The article quotes Gabrielle Lajoie, a managing director with the executive search firm Russell Reynolds Associates, as saying that experienced CEOs from biotech firms may be considering a move into venture capital. She cited former Anadys Pharmaceuticals Inc. CEO Kleanthis Xanthopoulos, who joined Enterprise Partners for a period (before moving back to the top spot at Regulus Therapeutics LLC) as one example.
As for CEOs in the financial services industry, it remains to be seen whether increased regulation under a Democratic-controlled Congress, as well as limits on executive compensation for firms that participate in the bailout, will have more top execs looking for greener pastures in the venture capital world.
Baruch College students received some timely advice from two of the college’s more famous and successful grads recently. During the school’s Executives on Campus Program, 1962 Baruch College graduates Harvey Mallement and Harvey Wertheim, certified public accountants who teamed up to co-found Harvest Partners in 1981, offered their suggestions on how to get into the private equity industry and the job prospects within the field, according to The Ticker, Baruch College’s online blog.
The perfect starting point for getting a private equity job is an analyst training program position at an investment bank. Of course, with the current meltdown, there are fewer opportunities to get into one of these programs. However, both grads and working bankers can acquire advanced analytical skills from independent training firms such as The Investment Banking Institute (IBI). (By the way, on behalf of its members, JobSearchDigest.com has negotiated a special discount for IBI training.)
Wertheim, who holds an MBA from CCNY, urged students to pursue an MBA, but not until they had three to five years of business experience under their belt. He also said students can migrate into private equity after a stint with a major consulting firm.
His partner Harvey Mallement urged students to keep up their reading in the industry, tapping sources such as The Daily Deal, Buyout or Private Equity Analyst publications.
As for what their own private equity firm looks for in a candidate, Mallement noted candidates must have great academic credentials, including a high GPA, near-perfect computer skills and solid accounting expertise. During the private equity job interview process, Mallement’s firm also puts candidates through an actual case study to see who solves the problem best.
