Private Equity vs Venture Capital

sangon's picture
Rank: Chimp | banana points 5

Hello everyone,

I live in a emergent country with high growth expectation and i was a intern for 1 year in a top-tier IB boutique.

I just finished my university and received two analyst job offers from the biggest national PE fund of my country and from the biggest national VC fund of my country. The PE fund is 10x bigger than the VC fund and the teams have the same size. Both offers have very similar salary (i don't know anything about bonus).

Personally i think that the VC job is more interesting, and i would have to work for less hours, but in the other hand the PE job probably pays much better and has more prestige in my country, because the VC market is still really small.

If possible i would like to hear some advice of people who have worked in both fields, or have knowledge about this areas, to help me to make my final decision.

Thanks very much!

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Comments (5)

Dec 22, 2018

Hi sangon, check out these links:

I hope those threads give you a bit more insight.

Dec 27, 2018

the biggest thing is difference in point in company lifecycle. because buyouts are supported with leverage, the company needs to be able to support this new capital structure- positive fcf. VC is a lot more early stage lifecycle where equity capital is funded; greater focus on capitalization, cash-burn and run-rate. because vc~early stage, it appears to be more tech focused while pe~later/mature stage, you see a lot more asset rich industry's like consumer, hc, fig, dig

Jan 1, 2019

In general, you'll have a better opportunity to build technical skills in PE. VC can be quite "fluffy" and unless you have the right background (for ex: hard science or CS), your value add can be quite low at such an junior position.

IMO you should go for PE especially since you are in EM - depending on the exact country gotta make sure the VC fund isn't too country-specific.

Jan 4, 2019

I've worked for both VC and PE (in Europe) in my early career, and ultimately it really depends on what you prefer to focus on. If the VC is focused on what interests you (e.g. fintech), it could be very interesting, but I think PE would give you a better understanding from an operations and investments point

Jan 4, 2019