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The bottom line is that itʼs probably a minimum of 10 years of full-time work experience before you can even consider starting your own PE firm. I doubt that anyone could do it successfully below the age of 35 today, and most founders are probably in their 40s or beyond.

Key points This principle suggests that roughly 80% of outcomes (outputs) come from 20% of causes (inputs). Applied to investing, it implies a small portion of your holdings might contribute to a significant portion of your returns.

Pros of the CFA Industry Recognition: Recognized for its rigorous focus on investment knowledge, the CFA is highly regarded in private equity, especially for roles focused on due diligence, risk analysis, and portfolio management.

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The twenty, or 20%, of the fee structure applies to the profit sharing. This is better known as carry in the industry. Once the general partners distribute capital back to all the investors, they get 100% of their money back. Every dollar after that there is a profit-sharing component.

In private equity, approximately 20% of portfolio companies are responsible for around 80% of the value generated. This allows investors to prioritize time and capital toward assessing these critical assets.

Productivity. You can use the 80/20 rule to prioritize the tasks that you need to get done during the day. The idea is that out of your entire task list, completing 20% of those tasks will result in 80% of the impact you can create for that day.