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Private Equity Research Analysts and Associates

History

The origins of private equity can be traced to 1901, when the entrepreneur and philanthropist Henry Phipps created a private equity fund called the Bessemer Trust. Most early private equity funding consisted of investments in or the acquisition of start-ups rather than established companies. The concept of a private buyout of an established public company remained foreign to most investors until 1958, when President Dwight D. Eisenhower signed the Small Business Act. The act provided government loans to private venture capital firms, allowing them to leverage their own holdings to make bigger loans to startups—the first real leveraged purchases. Soon, other companies started playing with the idea of leverage.

Research analysts and associates play an important role in the PE industry. They help PE firms identify new investment targets as well as manage, improve, and ultimately sell their portfolio companies at a profit.