In this article, we will be discussing how to write a top-notch cover letter for a particular sector in finance; this sector is usually of great appeal to many students. The sector we are interested in is private equity. Over the years, many graduates have made make great careers off it. But first things first let’s have a look at what private equity is.
What is Private Equity
Private equity is the industry where capital investment is made into companies that are not publicly traded on the stock exchange. To be successful at their purpose, private equity (PE) firms are known to conduct extensive research to discover private companies with great exponential potential that they’ll buy or invest in to increase their value. To meet this objective, PE firms will provide the resources necessary to help the target companies grow, develop new products and restructure. A PE firm may choose to keep the acquired firm for a long time if it feels like not selling. Your work as a PE professional will be participating in the entire process of buying/investing, maintaining and liquidating/exiting an investment or acquisition. Consequently, if you are looking to start a Private Equity career, one of the best options is to get an internship with one of the PE firms.
Some of the best equity firms include:
- The Blackstone Group is the world’s largest alternative asset manager with $915 billion in assets under management.
- Tikehau Capital provides an internship of a minimum of 6 months – You will support the Private Equity team in evaluating, filtering, executing and monitoring equity transactions in Europe.
- Credit Suisse, a leading global wealth manager with strong investment banking capabilities offers a 10-week program where you will make valuable contributions to the bank’s work and develop your skills.
- AURELIUS offers a private equity internship of up to 3 months in their London office
- Global Founders Capital will offer you the opportunity to work as a growth & private equity intern.
- CDPQ which is headquartered in Quebec has offices in 10 countries (including London) and manages more than CA$ 390 billion in funds
- At Neuberger Berman, you will be part of the Secondaries team based in London and will work on secondary investments.
- At AXA Group you’ll assist the investment team in managing the impact investing portfolios among other functions.
- CVC Credit Partners
- Morgan Stanley offers off-cycle internships
- Nomura offers a 9-week internship programme.
If you can get a foot into the field of PE, it’s a career that pays very well from the beginning till the end.
If you are working as an analyst (this is the lowest level) at a top private equity firm in the UK will earn around £150,000 per annum. The basic salary would be £75,000 to £100,000 per annum with the bonuses topping around £56,000 to £102,000 per annum. If you then become a private equity associate, in your first year you would be getting around $100k-$220k per annum. This figure increases to $120k-$250k per annum in the second year and $150k-$300k per annum in the third year.
Private Equity Cover Letter Example [Tera Firma]
For those seeking to work in a PE firm, the process will in most circumstances include a cv and a cover letter. And you are in luck because Congrapps is regarded as the number one platform for verified successful career resources! We only collect actual cover letters & interview experiences of those who made it to the most competitive graduate and entry-level jobs in Banking, Finance, Consulting and Law in the UK. Our objective is to help graduates from around the world to achieve their dreams by levelling the playing field and giving access to the same information to everyone! The following sample cover letter is a successful letter to one of the top PE firms that can be found in our database of successful cover letters.
Sample Tera Firma Cover Letter
Terra Firma Capital Partners
2 More London Riverside
London SE1 2AP
Dear Terra Firma Recruitment Team,
Application for Summer Internship Programme
Several traits of Terra Firma make it stand out from similar institutions.
Why Terra Firma?
Consisting only of top talent and being relatively small in size, the Terra Firma team offers interns direct access to the years-long experience of gifted professionals, and the ability to learn from it, as well as to build stronger working bonds, shaping a more pleasant and efficient working environment.
Furthermore, exposure to the company’s client base, allows young talents to obtain a more detailed understanding of how the entrepreneurial mind works. Working with such clients requires implementing analytical, creative and people management skills. This entails a series of challenges, but only by overcoming challenges, one can get closer to excellence.
Why Private equity?
Firms in the private equity field, and Terra Firma in particular, possess a contrasting feature to other financial institutions, namely their way of advising companies which consists not only of supplying the financing but also providing expert assistance in overcoming difficulties so that companies in distress could reach their full potential. I am keen on participating in the process because I have always been passionate about corporate finance and interested in what leads a firm to prosperity.
Why am I a good fit for Terra Firma?
A distinctive set of qualities is required, for one to be a successful contribution to Terra Firma. Briefly, they can be summed up as numerical affinity, creativity and an entrepreneurial way of thinking. My five years long extensive studies in finance, and my interesting background, were the main ways in which I acquired the fore-mentioned qualities. Nevertheless, what I truly desire is to be part of an environment, which will push me to unlock my full potential and grow beyond my current limits.
I would like to thank you in advance for your time and consideration. I am looking forward to hearing from you soon and discussing my application with you further.
Tips for Writing a Private Equity Cover Letter
Below are some steps that will help you on your journey to create an excellent private equity cover letter (like the one above).
Tip 1 Research
Before you even set your fingers on your keyboard or put pen to paper you should research the firm you intend to apply to. In your research, you should adopt the objectives of knowing everything there is to know about the company: culture, values, hierarchy, clients and the department or person that will receive your cover letter. Carrying out research will help you with the words that you will use to woo the company in your letter.
Tip 2 Highlight Key Details in the Job Description that Match your Experience
Study and understand the description of the advertised role. Most PE positions will display the skills, requirements, duties and responsibilities expected of someone taking up the role. You must determine if you satisfy the aforementioned factors. In doing this I’ll advocate you make a list of mutual skills and the like that you share with the company; by doing this you’ll remember to signpost them in your cover letter.
Tip 3 Contact information
I believe it shows excellence when you incorporate the contact information for the hiring manager into your letter. Yes, you might not be writing a physical letter but the rules of a formal letter still apply. Include the hiring manager’s first and last name, title, the name of the company and the company’s address. You may also add your contact information. This can be optional where you have previously provided your contact information elsewhere.
Tip 4 Address the Recruiter Formally
If you have found out the name of the recruiting manager address the person with a formal greeting. Use their title and name (you can use just their last name or full name). Use “Dear” as a greeting, and include a comma after the name. Where your research did not throw up the name of the hiring manager, it’s acceptable to use “Dear Hiring Manager” instead.
Tip 5 Introductory Paragraph
In a world where recruiters have an infinite pool of potential candidates to choose from it is paramount that you deliver an introductory paragraph that is more substantial, effective, and engaging to the person(s) reading your letter that can satisfy their hungry brains. In your introductory paragraph, you should aim to provide the following details: the role being applied for, where you found the advertisement, your education and powerful results, your work experience, and any other thing that sets you apart in concise words. We reiterate that your introduction needs to bedazzle – it could be the difference between you ending in a heap of unwanted letters or a select few.
Tip 6 State your Motivation for Pursuing a Private Equity Career
This tip and the next two tips usually make up what is known as the body of the cover letter. The first tip we have for you is that you need to dedicate a paragraph telling them why you are interested in having a career in the private equity sector. To create an endearing paragraph you should be genuine in what drives you forward in your pursuit to become an analyst. Use language that highlights how you have come into the field of private equity.
Tip 7 Why That PE Firm
Every private equity company is unique and if you fail to show that you are in touch with their uniqueness through your cover letter, your application will most likely fail. For each firm you are applying to you should use the information you got from your research to show them you are in the know of what their practice areas are, what makes them unique, their reputation, and so forth.
Tip 8 Why You
You must differentiate yourself from the rest by showcasing your experience & qualifications and how they will benefit the company. In one or two paragraphs display the skills or abilities that you feel make you the ideal candidate for the position. If you have experience in investment banking, asset management, and venture capital or with financial modelling, forecasting, and risk management talk about it. Ensure that you utilize the body of the cover letter to show the PE firm why you are a good fit for the firm. You must prove to the financial institution that you believe in yourself to get the role and the way to do this is by talking about what you have achieved. This tip rounds up the body of your cover letter.
Tip 9 Conclusion Paragraph
In your conclusion, use action words telling the recruiter what you want, when you are available and that you are looking forward to hearing from them. Remember to sign off your letter as you would do in a formal letter.
Tip 10 Proofread & Review
After you finish writing, proofread your letter and ask someone to read it also. Make as many corrections as necessary.
Tip 11 Good Formatting
When writing is very mindful of your formatting, please endeavour to apply a consistent font type and size throughout your cover letter. In light of this, if you were thinking of using italics it might not be the best of ideas.
Tip 12 Follow the word limit
Regardless of how awesome you are, your cover letter should be succinct and follow the word count. There’s a reason why they have the word count in place; maybe it is to test your ability to be concise and follow instructions. Quite a lot of firms do not read anything after the word count has been passed. If you happen to be applying to such a firm and you have written beyond the word limit it will affect the flow of your thoughts, so it is better you don’t go down that path. If there is no word limit, make sure that your cover letter is no more than a page.
Tip 13 Do not Confuse your Cover letter with the CV
Some PE firms will require that you send your cover letter along with your CV; if asked this you must make sure that you note that your CV and cover letter are two different documents; and as such the content should be different. One should not be a substitute for the other. Your CV should be where you list things you’re your education and experiences while your cover letter should be the platform you use to highlight the strongest points of your experience to supplement your CV and entice the recruiter to learn more about you through the next stage. Don’t forget to make sure that the cover letter aligns with your CV.
Concluding, we would be purposely withholding necessary information from you if we told you that getting a role at a PE firm is like a walk in the park. It is very hard because of the financial benefits attached to the sector and the impact you can make on your client’s financial world. But this does not mean that it is impossible! Our advice is you take the solutions we have advocated in this article and add them to the ones you already have when writing your cover letter. Furthermore, we have collated several successful PE cover letters; you should have a look at them.
Charles is a writer, practising lawyer and personal trainer who loves learning and developing himself. He graduated from Middlesex University, London with eight first-class grades in the second and third years of his law degree, and received a postgraduate offer from Cambridge University. He loves strength training, boxing and encouraging people to succeed in their pursuits (legal ones)
Congrapps is the №1 Platform for Verified Successful Career Resources! We collected the actual Cover Letters & Interview Experiences of those who made it to the most competitive graduate and entry-level jobs in Banking, Finance, Consulting and Law in London.
We help graduates achieve their dreams by levelling the playing field and giving access to the same information to everyone!