What A Head Of Business Development At Compass Diversified Wishes They Had Known Before Entering The Private Equity Industry
Katharine, a Managing Director/Head of Business Development at Compass Diversified, reveals a misconception about private equity roles requiring a finance background, stating "you don't need...a finance degree from a top university to do this if you have the drive". Katharine's own career path, encompassing economics, communications, and psychology, demonstrates alternative routes to success in the industry, highlighting the importance of self-learning and exposure to investment banking over strictly traditional educational pathways.
Private Equity, Business Development, Finance, Career Paths, Investment Banking
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Katharine (Katie) Melzer
Managing Director/Head of Business Development
Compass Diversified
University of Michigan
UCLA Anderson School of Management - MBA
Business Management & Admin
Finance (Banking, Fintech, Investing)
Business Strategy
None Applicable
Video Highlights
1. Katharine's career path demonstrates that a finance degree isn't strictly required for a successful career in private equity. Her background in economics, communications, and psychology highlights the value of diverse skills and the ability to acquire finance knowledge independently.
2. Many roles within private equity exist beyond quantitative analysis. Business development, in particular, doesn't necessitate a strong finance background from the start.
3. Exposure to investment banking can be beneficial, but there are multiple non-traditional routes to a career in private equity, making it accessible to individuals from various academic backgrounds. Self-learning and initiative are valuable assets
Transcript
Q9: Wish known before - industry
What have you learned about this role that you wish someone had told you before you entered the industry?
When you hear "private equity," you might think you need to have majored in finance or be really good with quantitative analysis and complex math problems. While there's an element of that, it's not the entire picture. There are other roles within private equity beyond just quantitative analysis.
Looking at my own career path, I majored in economics, communications, and psychology, with no initial finance background. I did take finance classes, but I sought them out independently. Knowing this, you realize you have what you need internally; you just have to actively seek out those resources. There are many free resources available.
You don't need a finance degree from a top university if you have the drive to figure things out and learn on your own. While a significant part of my job involves finance, it's not entirely finance-focused. Business development, in particular, isn't a role that necessarily requires a strong finance background.
However, you do need some exposure to investment banking. This will give you a better understanding of what the industry does. There are many less traditional paths to this role than a business or finance degree.