Trending Content - Private Equity Forum
| +60 | Working on Juneteenth | 35 | 10h |
| +24 | From Public Equities to Private Equities | 4 | 5d |
| +22 | Hardest time I have ever seen to be a GP | 3 | 1d |
| +18 | Weighing exit from LMM PC/PE | 2 | 3d |
| Search Fund Internship Vs. Internship at my family's Family Office | 10 | 1d | |
| +15 | Healthcare PE | 6 | 1d |
| +15 | KKR comp for Principal | 10 | 19h |
| +15 | Anyone have intel on Aterian Investment Partners? Culture, Comp, Performance? | 9 | 4d |
| +14 | How to Get on Career Track / Stay Post ASO years | 4 | 15h |
| +12 | LMM groups within larger platforms? | 1 | 5d |
Career Resources
what is financial engineering, didn't have it at my school, how does it differ from straight finance
Using quantative methods to develop and trade in derivative products in rder to hedge risk.
You'll get a better explanation on wikipedia
i guess you'd use some interest/currency swaps where appropriate, if that counts
yea i think you're right.
Financial eng is also looking at restructuring the comany's balance sheet, subsidiaries and debt structure.
often by reengineering and gearing, you can achieve better ratios, also better return on equity for the core business. selling it into parts that sum up more than the price you paid for it is also a commonly used technic
Maybe the PE shops just want people that took really hard finance classes like Stochastic calculus, so they know balance sheets are easy for you. I have not heard of this recruiting practice though.
Stochastic calculus has nothing to do with balance sheets.
just means structuring a LBO and subsequent recaps (tinkering with capital structure put in place) in order to profit instead of operationally turning around the company for profit. The big buyout funds (KKR, Bstone, etc) are known for this (somewhat hands off approach with company after they purchase). It is not financial engineering from school, just a term used in the PE industry, not really that complicated
Financial engineering in the conventional sense of the term is used mostly by trading desks and quant funds. FE in PE is totally different work, like capital structuring, recaps, LBO, etc. So some overlap of skills.
From personal experience, PE firms are gong towrds Real Options Analysis as this gives them a better view of future events.
Et modi autem magnam est et quo ut. Iure repudiandae nulla quis tempore illum vero.
Ut veritatis mollitia aliquam et unde harum. Quo ut tempore aliquid provident sint vel laboriosam. Dignissimos dolores placeat quis minima. Qui ratione molestiae sequi provident dicta et.
Fuga hic amet sequi ut fugiat. Quis et rem laborum eius molestias. Sed est dolore voluptatibus et aut. Maxime sint totam provident provident illum quasi assumenda. Eligendi distinctio velit voluptas temporibus omnis ullam nam. Doloribus odit magni ut repellendus ullam deserunt laboriosam qui. Labore quae deserunt maxime corporis iste.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...