Ex-PE/IB folks - what skillsets do you wish you developed more in finance?

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January 29, 2022

by a searcher from The Ohio State University - Max M. Fisher College of Business in Chicago Metropolitan Area, USA

For the current searchers and operators that worked in PE, what of the typical PE/IB skillsets do you wish you honed in on more during your time in finance? What files would love to refresh on/have access to again or wish you paid more attention to?

I am currently working at ops focused PE firm but not sure if I want to stay in finance full time but want to make sure I make the most of it. Luckily my firm is pretty operations and process focused at the fund level so I'm not just a LBO monkey (I'm a PPT monkey too!). Looking to maximize my time in PE while considering other more entrepreneurial options.

Thank you

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Reply by a searcher
from Texas Christian University in Dallas, TX, USA
Hi Zach, ex IB associate here. I'm still working on finding my first deal, so somewhat limited knowledge, but here are my thoughts on your question.

In general, I think many of the work done in IB/PE (especially IB) is overkill as it relates so ETA or acquisition of a SMB. Having said that, I think a good understanding of how the financial statements work together is important, especially related to finding trends / anomalies in the statements and being able to trace and proof cash. The other "hard skill" I would suggest is some baseline knowledge legal documents, and especially contracts; while you'll likely have an attorney helping you during the transaction, I'm sure you'll encounter various contracts during ongoing operations where it helps to be able to know where the sensitive areas are and how to negotiate them. Really though, I think it comes down to the "soft skills" like James and Gian alluded to like being able to adapt to different personalities, effectively communicate and break down ideas/concepts, and be organized / maximize efficiency. While these might not be what come to mind when you think IB/PE skills, these are definitely some of the keys to success in the industry and the good news is that you don't have to be in the "industry" to develop them. Hope that helps!
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Reply by an investor
from University of Pennsylvania in St. Louis, MO, USA
Totally agree with James.I've found the transition to most business opportunities is frequently less about the technical skills than it is about the people skills. People find motivation from different sources (money, notoriety, public acknowledgement, giving back to the community, etc.) and the best leaders find a way to tap into the individual's personal motivations when driving the business forward. It is not easy, and I am unaware of a "how-to" guide that teaches this.
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