career in finance tagged posts

Banking Jobs: Why More People Flock to the Finance Sector?

When seeking out career ideas, most people do not want to work labor jobs. While many people do not like labor, they also do not relish the idea of working in tech, law or medicine. For this reason, many workers young and old want to work in the finance sector. There are plenty of reasons for this, though not all of the reasons may be apparent. Here are four reasons why many people have been looking for work in the finance sector.

A recent graduate can start out at the bottom as an accountant or financial analyst and easily work their way up the top. Once at the top, an employee will enjoy a serious income as finance pays well. In fact, the CFO is usually the second highest paid employee of a company only behind the CEO. Simply put, finance jobs pay well.

The finance sector is an exciting sector. A recent graduate in finance can choose to work in a number of arenas and still enjoy their job. Some people like finance as they want to work in banking while others may want to work as a financial analyst at a private firm. Either way, in the finance sector, an employee has many exciting  job opportunities.

Many recent graduates want to take a different path. When working in finance, an employee can work anywhere in the world without a problem. There are plenty of banking jobs in Malaysia and all over the world. With a background in finance, one can work in banking jobs just about anywhere in the world. Without a doubt, anyone wanting job opportunities overseas must look at a career in finance.

Finally, a career in finance will help a person in their real life. Skills one learns in banking or other finance careers will help a person excel in their own personal financial matters. Not only that, when a person with a background in finance wants to switch careers, their job experiences in finance go a long way in securing interviews for other work fields.

There are plenty of reasons why a person should jump into a finance career. Luckily, in finance, one’s job is not set in stone as there are plenty of opportunities to move up the ladder. A person in school should consider obtaining a degree in finance if he or she wants to land a fascinating job.

Next Career Advice – How To Appropriately Ask For a Raise For Your HR Jobs?

 

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Private Equity: How to be a Successful Fund Manager

The worldwide investment pool for private equity is $3 trillion. Of that amount, roughly $1 trillion is actively looking for investment opportunities. At last count, there were 6,117 companies looking to invest in any project that can return a profit. They are hotels, restaurants, distressed securities, junk bonds, hospitals, apartments and Chinese companies to name a few. The sums of money invested are huge and come from endowments, foundations, private and public investors, pension funds, service companies, family offices and investors who are authorized to act on the behalf of others.

Competition and performance are your keys to success.

First, let’s look at some of the skills you need as a fund manger:
Personal qualifications.
· You must be a super, sophisticated salesperson. You are the standard bearer for your firm. Even though you may hire a cadre of fund- raisers, ultimately the investor will want to meet you and “size you up” so to speak. If you are just starting out, the inevitable question from an investor is: “Why should I invest $3 million in your company when I can invest it in one of the top ten funds?’ Here you must rely on your past experiences. Most often fund managers have managed portfolios or were traders with a successful track record.

 

The Art of the Deal.
· Now you’ve raise the capital you need. The next step, and this is the nutcracker, what do you invest in? That one decision will make or break you. You may hire a small band of analysts who search and find the best deals. Ultimately, the final decision rests on you. If you lose money you will be sacrificed on the altar of failure. If you make money you will be judged by how you rate compared to your peers. But that’s just the beginning. If you stop now you are finished. You’ve got to start the whole process all over again and set up a new and different fund.

 

On Site Managers.
· Many deals require specialists who will manage your property or investments. Here again, your savvy in picking the brightest and the best is crucial. Many deals start out winners, but unless they are closely monitored they can fall apart quickly. Remember if you buy a company hoping to improve the balance sheet, the investment must produce results otherwise you will lose your investors. These are unpredictable times and where you had hoped to resell the company in one or two years, it may not be possible to do so. Remember also, that this plan works best in a bull market. If the market turns sour, your company can start losing money and you’ll quickly find yourself out of business.

 

Back Office Personnel.
· You will need a staff of qualified accountants, lawyers and auditors who will translate your activities in clear, concise, readable formats.
· You will also need personnel who will communicate your results to your investors via website, email, and financial summaries.

 

Compensation.
· Generally, there are two main types of fund manager compensation. One is to receive 2 to 2.5% of committed capital. The other is to take a cut of profits (carried interest) that normally is 20%. This can taken yearly or deferred, depending on how the deal is structured.

 

Some closing comments. 
· Being a fund manger can be a lonely job. Unlike listed companies that are continuously evaluated against one another, you have no such guidelines. You are often a one-a-kind enterprise.
· You must always be looking forward to your next fund while keeping your present one afloat.
· There is no time off. You can’t just say: I’m going to wait until next year.” That’s a sure sign you are going out of business.

Continue reading latest main stories of private equity issues from the David Hand Crescent Point Asia and Crescent Point Private Equity info site, the robust emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

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