Careers in Private Equity : Guest Talk by Mr. Kartik Ramachandran, Principal, IDFC Project Equity Pvt. Ltd

He emphasized the importance of understanding the legal frameworks of PE investments, as the funds are huge and the firms no public record. He also explained the various factors covered in an investment term sheet. He suggested that a retail investor should stay away from private equity as there is high risk appetite.

He discussed the career options in private equity. As these are thin(less people) organizations, the selection of a candidate is done through great scrutiny. The upside for a GP (General Partner) is that he gets a share of returns on successful investment and no downside if the investment doesn’t yield significant returns. He also explained the traits of a good private equity fund manager. The investment committee is the one who takes the final decision after all the factors are weighed in. The discussion ended with few more questions from the students, such as the choice of investments a company makes, how a company decides to go for private equity or for IPO.