difference between prilvate equity, hedge fund, and bulge bracket?

IndianaGrad65
Tue, 06 Apr 2010 09:40:19 +0000

private equity firms (usually) buy privately owned companies that aren’t working to their full potential, reorganize the business so that it is much more efficient/earning more, and then sell it to another company (sometimes the company goes public).

hedge funds invest people’s money in stocks, bonds, and other publicly available investments to earn a nice return.

Bulge brackets do a lot. They have traditional investment banks, research, sales and trading, private wealth management, and usually sponser some PE/HF’s run by former employees.

This is how things usually run, but the current trend is mixing PE and HF stuff (hedge funds will invest in PE firms, PE firms will buy HF).

It is very very hard to get into all three, but the order of easyness to difficultness I would say BB stuff non i-banking, BB i-banking, PE, HF.

I have no clue about salaries of PE/HF and I think a lot of it depends on how well you perform/your firm performs during the year. For i-banking, usually starting salary of 70k with a year end bonus between 15k-70k depending on how well you perform during the year.