hello everyone welcome to the channel of Wallstreetmojo friends welcome to the
tutorial on equity research versus private equity now this tutorial is
based on a very conceptuality regarding or you can see a dilemma solver because
an MBA was coming on let it be a CFA he's always into that dilemma
that what exactly should you should go for equity research or whether they
should go for private equity or Investment Banking and so on and so
forth so we are over here to discuss the difference between this two let's get
into the nitty-gritty of the same and understand what exactly goes in and
around see equity research and private equity they both both the profession may
seem to run along the same lines but there lies a huge difference between the
two of them equity research is all about let me write let me just draw things for
you a table that will be really be helpful for us to end to do some
analysis that is equity research and private equity and over here some point
of difference can be also the point of difference okay and this you see you
know let's begin so both the both the areas are really
lucrative but there is a huge difference equity research is all about over here
is finding valuations and you can say is researching and analyzing the listed
companies and stock exchange while private equity is all about researching
research is a main thing in in both the same in both the case when analyzing the
private companies and interpreting you can say with you know interpreting your
results so in this tutorial will try to point out the major differences between both
the profession and make it simple for you for your comparison so the second
point what is will be discussing what is equity research and what is private
equity equity research is a part it is a part of investment banking sector and is
meant for the intellectual and qualitative students your role as an
equity research analyst would include talking to forms traders and brokers for
discussing and sharing investment recommendation to recommendation for
clients so you would also have to collect information info and research is
is a part and parcel of your life if you are if you are into equity research so
basically you would have to collect information perform some financial
statement analysis FSA and based on the research you would be you'd prepare the
detail equity reports along with the complex financial models the financial
models is very important part of this relative valuation which is known as
comp comp valuation or precedent transaction method president transaction
whether is very famous once again p/e ratio PPV ratio
comparable coms and so on and so forth now let's see something regarding
private equity see a private equity analyst is a person who deals into
research and you can say analysis both okay but an analysis of what exactly
that is my question of private companies using the financial modeling techniques
see a private equity analysts the acts as a support to the private equity
companies and trading groups by providing an analytical and you can say
asset valuation support so asset valuation support and analytical support
is one key task the major focus is on recommending the strategies you know and
for the highest return on investments and balancing the equities and debt
instruments okay so if you like you know if you wish to
go into both the field they both are lucrative they both are really good but
it's on a personal choice to decide let's see some of the other details what
are the prerequisites that is required for this both the fields basically if
you see the prerequisites in case of equity research and in the PE let's see
usually CAS and MBAs are at the top of the choices of the recruiters for the
position of equity research analyst but it is not mandatory to have a commerce
background you have to master your analytical and quantitative ski skills
over here and you should have a strong interest in financial markets accounting
economics so you should also possess excellent communication skill in this
particular arena communication skills will play a major
roles you can say for pursuing the career in private equity a background of
Commerce and finance it is recommended Commerce and finance is recommended for
you should be an MBA to work in this field and should have relevant skillset
to handling multiple tasks logical reasoning analytical reasoning so
candidates with excellent verbal and written communication skills a preferred
now let's see the employment outlook in both the case so the employment outlook
in this scenario see basic job roles that are part of equity research our
trainee ok so the very first step towards the career equity research is
being a trainee in a company it teaches you necessary skills required for
stepping into the shoes of associate and training can be of any time period you
can say between close enough to between 6 months to 1 year ok and and generally
it involves workshops case studies and lectures the second are the associates
training required in this is close enough to 1 year to 2 years ok and
they are hired as the associates associates are Equity Research Analyst
they provide written reports written reports and company opinions to the
sales department of the form the next is senior analyst the senior analysts so
the senior analysts are is a reputed position to inquire you would accompany
the CEO of the company in the doors and advise him on the special matters
generally a candidate works as an associate for around you know for 3
years and works as a senior analyst for several years before being promoted to
the position of vice president on the similar line of career progression in
the field of private equity it involves the designations which are as follow in
case of private equity the first one is the know known as the analyst he starts
at the level of analyst see as an analyst you would
be be supporting your team members and your major focus will be on financial
modeling developing your analytical skills so you're required to be an
analyst for close enough to 2 years before being promoted to the position of
associate the next is associate so over here the experience of around 2 or
more years in private equity firm would make you suitable for the position so
you can say 2 years you would review applications support your team members
in negotiations so negotiation will play a part over here and execution and
building contact execution the plan will will will play a major role in this
execution networking all will be major role playing drivers in in this
particular field so that is it and it requires a close enough to you can say
3 years of experience in this field as an associate before applying for the
post of associate director now next is associate director in this case the
minimum experience that is required is around 4 to 5 years and it's
compulsory for being an associate director sure you would be an important
part of a larger transactions and you would confine yourself to mid market
level mid market transaction as an associate director okay the next one is
a investment director let me read for you investment director so in this
scenario only those candidates who are highly experienced and I am selected for
this for this position so as an investment director you will play an
extremely important role in basically fundraising and taking strategic
decision strategic decision so over here the experience will play a major role
and your salary your compensation will be really high at this end second most
important thing only highly experienced and selected people are being selected
for this role now let's see something related to the compensation in
compensation in case of compensation talking about your career in the field
of equity research you're earning as an junior analyst would range somewhere
close to between $45,000 to let's say around $50,000 in case of equity
research annually and after or promotion as an associate you can expect a close
enough to in between 65,000 to 90,000 range on the basis of your performance
and experience as in senior analyst your others right for you senior analyst you
can expect between 125000 to 250000
dollars and we provided and you can earn hefty amount as a bonus which can be two
to five down five times of the basic compensation while speaking of the
career in the private equity if you go to see then this pay scale is around for
40000 to 1 lakh dollars and that is pretty good as a part apart from
the basic recommendation additional benefits like bonus and other emoluments
can get can get you a really good money so there are some pros and cons related
to both both the cases let's see see as a candidate post in your career in the
field of equity research the pros are you can say do you have good salary
undoubtedly okay but there is ample you can say of ample amount of exit
opportunities for work absolutely opportunity for work and the next one is
stable working hours so this are some of the pros there are some cons related to
this over here it is basically a desk bound job okay that is one bad thing
longer duration of in sitting in front of the computer sitting in front of the
the computer so this is again con and there is an interdepartmental pressure
in this particular arena in this in the in the field of private equity your
career is related to pros and cons would be as follow the first one is
you know there are convenient working hours so working hours are good the salary is
good salary again the same over here and there is ample knowledge to gain in this
particularly scenario okay so ample knowledge and there are some consolation
to this which is you can say in depth study and not much recognition is is
given in this particular end not much recognition as compared to other field
so what to choose see after reading the detail analysis of both the profession
this equity research and private equity it becomes clear that both of the
options can earn you good and give you really good monetary benefits by posing
your career equity research you can bring it can bring you in the limelight
as an aspirant of the private equity sector you would have to be compromised
in the limelight fact factor the private equity jobs can provide you valuable
experience which can be used later if you decide to foray into other sectors
equal research jobs are for those who have a strong liking towards the finance
and financial analysis so the decision to choose or any one of the given option
is extremely difficult as both the jobs can take your career to different
heights thank you everyone
For more infomation >> Every Which Way but Goose - Duration: 22:28. 
Không có nhận xét nào:
Đăng nhận xét