Blackrock Inc. is the world’s largest buy-side investment management firm with assets under management worth USD 6.3 trillion, or more. As a graduating student in finance, you would certainly like to join the titan among the kingdoms that exist across the globe. But, getting entry into the top private equity firm of the US can be challenging if you are not from a premier business or finance school. However, it’s not impossible to get your foot in one of the many premises of the said investment management firm located across the globe, when you have not gotten admission into a top-tier university, or institute.
What are Buy-Side Financial Services Firms?
Buy-side are the US private equity firms that are located on the Wall Street in the New York City of America, and those, which deal in purchasing securities for the fund managers. Private equity investment professionals who are employed in the buy-side financial institutions, perform operations on their company’s behalf that comprise mindful purchase of financial products such as securities and stocks.
Money-management for their wealthy clients is the primary reason for the existence of buy-side financial firms. These firms deal in a variety of financial products such as equity funds, hedge funds, proprietary trading, and trusts.
Buy-Side Global Giants
With Blackrock being the world’s top asset managementfirm, second comes Vanguard. Together, these two hold the capability to shake the market prices as they have large scale investments written to their name. Buy-side firms exist in the first place to help create value for their clients by offering expert advice pertaining to purchase of under-priced assets that hold the potential to grow exponentially in the near future.
As per Statista, the top buy-side financial services firms in the world, based on the amount of assets under management, are:
- Blackrock – assets worth USD 6.3 trillion
- Vanguard Group – assets worth USD 4.94 trillion
- State Street Global Advisors – assets worth USD 2.78 trillion
- Fidelity – assets worth USD 2.45 trillion
- BNY Mellon Investment Management – assets worth USD 1.89 trillion
Job Responsibilities of a Buy-Side Private Equity Investment Professional
Buy-side professionals work at non-brokerage firms such as mutual fund investment companies and pension fund institutions. They offer recommendations basis the intense market research they execute onto. Buy-side individual’s work in private, and behind the scenes, at big capital-management firms located globally. Their research strategies are generally kept confidential.
Buy-side analysts conduct financial research of financial firms that they consider recommending to their wealthy clients for purchase, and basis the intense research, an investment strategy gets devised, which involves carrying out the highly sophisticated financial modelling. These professionals converse directly with the top management of firms they are interested in buying.
CPEP: World’s Most ProminentPrivate Equity Credential
CPEP stands for Chartered Private Equity Investment Professional, and is issued by the globally-recognized private equity accreditation body, USPEC (United States Private Equity Council). Those seeking a rewarding career in private equity domain must enrol for the said certification as it enhances your value in the eyes of the employers, including the world’s top private equity firms. Students currently pursuing their master’s or bachelor’s in finance or accounting can get an impressive start in the private equity sector having acquired the said industry-relevant credential.
A private equity aspirant can get a great deal of help in breaking into top capital management firms such as Blackrock Inc. or Vanguard Group when having CPEP under his name on the resume. Recruiters at top private equity firms prefer certified individuals, especially those equipped with industry-relevant credentials. And that is where CPEP will offer you an edge over your direct competition. And hence, it’s highly advisable to enrol into the said certification and take full benefit of the same to take your PE career to the next level.