Harvest Period
A Harvest Period is the time when private equity firms sell or exit their investments to make money. Think of it like farmers harvesting crops - it's when all the work put into growing companies pays off. This usually happens 3-7 years after the initial investment, when the private equity firm has helped the company grow and become more valuable. During this time, firms might sell the company to another business, list it on the stock market, or find other ways to turn their investment into profit. This term is important because it shows experience with the full lifecycle of private equity deals.
Examples in Resumes
Led exit strategy planning during Harvest Period for 3 portfolio companies
Maximized returns during Harvest Period through strategic IPO timing
Successfully managed Harvest Period exits yielding 3x return on investment
Coordinated multiple Exit Period strategies during portfolio company Harvest Period
Typical job title: "Private Equity Professionals"
Also try searching for:
Where to Find Private Equity Professionals
Professional Networks
Industry Associations
Example Interview Questions
Senior Level Questions
Q: Can you describe a challenging harvest period you've managed and how you maximized returns?
Expected Answer: Look for answers that show experience in managing complex exits, understanding of different exit strategies (IPO, strategic sale, secondary sale), and ability to maximize value through timing and negotiation.
Q: How do you determine the optimal timing for beginning the harvest period?
Expected Answer: Candidate should discuss market conditions, company performance metrics, industry trends, and how these factors influence exit timing decisions.
Mid Level Questions
Q: What factors do you consider when choosing between different exit strategies?
Expected Answer: Should demonstrate understanding of various exit options, market conditions, and how to assess which strategy might yield the best returns.
Q: How do you prepare a portfolio company for the harvest period?
Expected Answer: Look for knowledge of financial documentation preparation, operational improvements, and understanding of what makes a company attractive to potential buyers.
Junior Level Questions
Q: What are the main exit strategies used during a harvest period?
Expected Answer: Should be able to list and basically explain IPOs, strategic sales, secondary sales, and other common exit methods.
Q: Why is the harvest period important in private equity?
Expected Answer: Should understand that this is when returns are realized and explain the basic concept of investment lifecycle.
Experience Level Indicators
Junior (0-2 years)
- Understanding of basic exit strategies
- Financial modeling and analysis
- Deal documentation support
- Market research capabilities
Mid (2-5 years)
- Exit strategy analysis
- Portfolio company monitoring
- Buyer relationship management
- Due diligence coordination
Senior (5+ years)
- Exit strategy leadership
- Complex negotiation management
- Investment committee presentations
- Team leadership during exits
Red Flags to Watch For
- No understanding of basic exit strategies
- Lack of financial modeling experience
- Poor knowledge of market dynamics
- No experience with due diligence processes
- Unable to explain different types of buyers
