![]() ![]() Work: VPs are responsible mostly for deal execution (e.g., due diligence, financing, memo writing, managing the Analysts and Associates, etc.).Pay: Principals earn more than VPs in base salary, bonus, and carried interest (the last one is especially significant).The main differences, if they exist, are: If the firm usually puts a VP and a Principal on deals, they’re different roles if not, the roles will be more similar. To tell if there’s a difference, look at how the firm staffs deals. the Vice PresidentĪt some firms, VPs and Principals effectively have the same job at others, there are modest distinctions but still significant overlap. The Principal and Vice President roles have some overlap, but VPs act more like “project managers for deal execution,” while Principals spend more time on deal sourcing, intervening in critical negotiations, and winning buy-in from the Partners.Īlso, since it is assumed that Principals will stay at the firm for the long term, they tend to spend more time working with portfolio companies.Īs a Principal, you may also become more of an industry specialist.Īnalysts, Associates, and even VPs often act as industry generalists, but starting at the Principal level, specialization becomes more common and is almost universal for MDs and Partners. ![]() Unlike Analysts and Associates, they spend little time crunching numbers, drafting memos, or reviewing data rooms. Private Equity Principals are midway up the career ladder, and you can view them as “Partners in training.” ![]() This article assumes that you’re already familiar with the private equity industry and the PE career path if not, please read the linked articles to get the basics. Tons of students want to “break into” investment banking or private equity, but only a tiny percentage will have the skills, self-sacrifice, and desire necessary to move up the ladder.īut since I enjoy creating content that has no practical benefit, I thought it would be fun to cover the more senior positions in the industry, starting with the Principal role: The Private Equity Principal Job Description That’s because content creators are following the money, and in most markets, ~99% of the money is spent by beginners. They typically earn $57.72 an hour, which translates to $119,634 annually.Given the constant obsession with private equity, you might expect more articles and online discussions about the long-term career path.įor example, what does it take to become a Private Equity Principal or Vice President? What about a Partner or Managing Director?Īnd are the work/life trade-offs required to reach these levels “worth it?”īut if you spend approximately 5 seconds searching, you’ll figure out that virtually all articles, videos, and tutorials about the industry focus on junior-level roles ( Analysts and Associates) and how to win them. Principal consultants need to have a bachelor's or master's degree in their field. They should also have the ability to manage projects and teams. Principal consultants need to have experience working in consulting at a senior level, the ability to build relationships with clients, and excellent interpersonal, communication, and teamwork skills. Their additional responsibilities may include conducting meetings with clients and management to determine projects' scopes, budgets, and timelines, developing business proposals and regulating project terms and conditions with clients, identifying potential clients through networking, referrals and communities, and tracking project progress and identifying and correcting any delays. Their responsibilities may include identifying and contacting potential clients, building strong relationships with existing clients for repeat business, maintaining frequent client communication, making regular client visits, and ensuring client satisfaction. A principal consultant is a senior member of a consulting firm's staff who offers expertise, resources, and guidance to help clients succeed in their businesses. ![]()
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