Private Equity vs. Investment Banking

The main distinction between private equity and investment banking is private equity works solely with private businesses. However, big institutions, government entities, and publicly traded companies are typically involved in investment banking.

Nevertheless, there tends to be quite a bit of overlap between these two professions in terms of the daily tasks performed by analysts and associates. Private equity can be handled with the same capabilities as investment banking. In actuality, a lot of investment bankers move into private equity during their professional careers. However, in private equity, experts frequently work directly with the businesses the firm invests in, while investment bankers serve as middlemen, enabling substantial financial exchanges.