Private Equity Certifications to Enhance One’s Career as a Financial Advisor

A career in Private Equity (PE) is a goal for most of the aspiring individuals in subject disciplines such as finance or business studies. However, very few get to break into this industry straight out of college. One of the most chosen career path by many in the PE sector is to be a “Financial Advisor” – an expert who mainly performs duties by a financial firm that offers better understanding about decisions related to investing and money.

Who is a Financial Advisor?

Financial Advisors perform their works both with organizations and individual clients, providing suggestions to assist them in reaching their financial objectives. This requires knowledge in a vast range of financial spaces. They enrich their abilities and demonstrate to potential clients and organizations by earning professional finance certifications. They also generate money by charging clients a commission for trades or an advisory fee for managed accounts.

Top Finance Certifications for Financial Advisors

Obtaining a private equity certification will strengthen the candidature for the financial advisor job roles to which one has applied. These qualifications are a great add-on as they are completely skill-specific, highly professional, and are preferred by several recruiters in the private equity sector.

Let’s have a look at a few certifications:

· Certified Financial Planner (CFP)

If an individual is aspiring for a career has a financial advisor, they can choose the Certified Financial Planner (CFP) credential. This certification focuses on the client relationship has one of the major factors of finance. To clear the rigorous and testing 7-hour qualifying exam for CFP, it is required to study a minimum of 1000 hours.

After passing CFP exam, the aspirants can enter into varied disciplines with the PE sector that consists of retail banking, wealth management, and private banking. This will cost about USD 2,000. The pass rate will be between 60 percent and 70 percent.

· Chartered Private Equity Professional (CPEP™)

Chartered Private Equity Professional (CPEP™) is a professional private equity certification that was developed by the United States Private Equity Council (USPEC). USPEC offers comprehensive private equity courses to excel professionally.

CPEP™ is designed to excel and to enhance one’s finance skills up to a level that is expected by the top PE and VC firms. CPEP™ offers to skyrocket the career who is already working in the PE sector. Added to that, it prepares accounting, finance, and business-study students to take an impressive beginning in their respective private equity careers.

Ø Eligibility

There are few prerequisites to meet the academic and work experience to get enrolled in the CPEP™ certification.

• MBA/Masters in the Finance discipline with a at least two years of work experience
• Bachelor’s qualification (with Finance as major) and a minimum of three years of work experience
• Studying in MBA/Masters in Finance discipline in USPEC accredited and recognized business schools, universities, and institutions
• Working in any of the finance sub-functions with a bachelor’s degree and an active credential by CFA, FRM or any other global certification, which as recognized by USPEC

 

There will be a 120-days immersion period based on the aspirants flexibility during, which they develop basics in top private equity firms. After that they can schedule the exam any time. There is also a benefit of 245-days to plan and also to take the exam.

Financial Risk Manager (FRM)

The Financial Risk Manager (FRM) is one of the finest finance certifications, which is designed for professionals pursuing careers as risk officers, financial risk analysts, and

other positions in risk management. The cost of the designation is about USD 1,500 and takes approximately a year to complete. The pass rate is approximately 50 percent for the FRM designation.

FRM is the best path if an individual aims to have a certain career in risk management and serve clients who look for advice related to taking investment decisions from PE investment professionals. FRM is the perfect credential because it is highly affordable and time-efficient as well.

There are two main examinations that one needs to clear within a year’s time to get this, i.e. FRM-I, AND FRM-II – Being regulated by the Global Association of Risk Professionals.

End Notes

The rise in private equity careers is attracting several certified professionals to join in this growing industry. If you want to excel as a Financial Advisor then choosing a right career path will benefit you in many ways.