A career in Private Equity (PE) is an aim for most aspiring graduates in subject disciplines such as finance or business studies. However, very few get to break into this industry straight out of college.
Only a few get selected from tier-1 business schools and stand a chance to work for the coveted top private equity firms. For undergraduate and master’s degree students who have missed the opportunity in the PE careers. They can enhance their chance to be part of this growing industry by doing certain and most valuable certification programs. These certification programs will offer the aspirants relevant skills and makes them career-ready.
Acquiring the private equity certifications and the candidature for the PE job roles will strengthen manifolds. These certifications are completely skill-specific professional certifications in finance and are highly preferred by several recruiters in the PE sector. One gains a competitive edge over others while being equipped with an added PE credential.
Individuals who are armed with industry-specific finance certifications are highly sought after. In this article, let’s have a look at the top finance certifications that most recruiters across the world want candidates to be powered off so that they can enhance their careers in private equity.
Certified Financial Planner Private Equity (CFP)
If an individual is aspiring to become a financial planner, they should obtain the Certified Financial Planner (CFP) credential. Client-relationship is one of the major aspects of finance, and is something this certification stresses. To clear the rigorous and testing 7-hour qualifying exam for CFP, one must is required to study a minimum of 1000 hours.
After passing this CFP exam, individuals can break into varied disciplines with a career in private equity that comprises retail banking, wealth management, and private banking. It will cost about $2,000. The pass rate varies between 60 percent and 70 percent.
Chartered Private Equity Professional (CPEP™)
Chartered Private Equity Professional (CPEP™) is a professional credential that was developed by the United States Private Equity Council (USPEC). USPEC offers comprehensive private equity certifications for individuals who want to be certified private equity professionals. This certification program aims to excel professionally in the said domain.
The CPEP™ certification helps an individual to elevate their finance skills to a level that is expected by the top PE and VC firms. CPEP™ helps skyrocket career growth for an individual who is already working in the PE sector. Added to that, it prepares accounting, finance, and business-study students to take an impressive start in their respective careers in private equity.
· Eligibility of Private Equity
It is a prerequisite to meet the academic and work experience requirements to get enrolled in the CPEP™ certification. An aspiring individual must have the following:
- MBA/Masters in the Finance discipline with a minimum of 2-years of work experience
- Bachelor’s qualification (with Finance as a major) and a minimum of three years of work experience
- Studying an MBA/Masters in Finance discipline in USPEC-accredited and recognized business schools, universities, and institutions
- Working in any of the finance sub-functions with a bachelor’s degree and an active credential by CFA, FRM, or any other global certification, as recognized by USPEC
There will be a 120-days immersion period for the aspirants during which they can develop foundations in top private equity firms. Then, they can schedule the exam any time after the 120-day immersion period based on their flexibility. One will also be benefitted from 245-days to plan and also to take the exam.
Financial Risk Manager (FRM)
The Financial Risk Manager (FRM) finance certification is designed for professionals pursuing careers as risk officers, financial risk analysts, and other positions in risk management. The cost of the designation is about $1,500 and takes approximately a year to complete. The pass rate is approximately 50 percent for the FRM designation.
FRM is a perfect path if one wants to have a very specific career in risk management and serve clients who seek advice on investment decisions from PE investment professionals. FRM is the best credential of one wants to be certified private equity professional. It’s very cost-effective and time-efficient as well.
There are two main examinations that one needs to clear within a year’s time to acquire this private equity certification, i.e. FRM-I, AND FRM-II – Being regulated by the Global Association of Risk Professionals.