Investment Period
An Investment Period is the timeframe during which a private equity firm actively looks for and makes new investments using money from their fund. Think of it like a shopping window - typically lasting 3-5 years - where the firm spends the money they've raised from investors to buy companies. After this period ends, the firm focuses on managing and improving the companies they bought, rather than making new purchases. This term is important because it shows how long someone has been involved in the active deal-making phase of private equity work.
Examples in Resumes
Managed deal sourcing during Investment Period for $2B fund
Led team of analysts through final year of fund's Investment Period
Successfully deployed $500M during Investment Period
Typical job title: "Private Equity Investment Professionals"
Also try searching for:
Where to Find Private Equity Investment Professionals
Professional Networks
Industry Resources
Job Boards
Example Interview Questions
Senior Level Questions
Q: How do you manage investment pacing during an Investment Period?
Expected Answer: Should discuss balancing deal opportunities across the investment period, avoiding rushed investments near the end, and maintaining discipline in investment criteria while considering market cycles.
Q: What factors might lead to extending an Investment Period?
Expected Answer: Should explain market conditions impact, LP relationships, deployment pace considerations, and process of getting investor approval for extensions.
Mid Level Questions
Q: How do you handle deal sourcing during the Investment Period?
Expected Answer: Should describe building relationships with investment banks, industry experts, and company owners, plus maintaining a organized pipeline of opportunities.
Q: What reports do you prepare to track Investment Period progress?
Expected Answer: Should mention investment pace tracking, commitment levels, pipeline reports, and communications with investors about deployment status.
Junior Level Questions
Q: What typically happens after the Investment Period ends?
Expected Answer: Should explain that the focus shifts to managing existing investments and preparing for exits, with new investments generally limited to add-ons for existing portfolio companies.
Q: What are the basic components of an Investment Period?
Expected Answer: Should describe the typical length, main activities (sourcing, executing deals), and basic fund mechanics during this time.
Experience Level Indicators
Junior (0-2 years)
- Basic financial modeling
- Deal sourcing support
- Investment memorandum preparation
- Due diligence assistance
Mid (2-5 years)
- Deal execution management
- Investment analysis
- Portfolio monitoring
- Investment committee presentations
Senior (5+ years)
- Fund strategy development
- Investment decision-making
- Investor relations management
- Team leadership
Red Flags to Watch For
- No understanding of basic fund structures
- Lack of experience with financial modeling
- Poor grasp of investment thesis development
- Limited knowledge of due diligence processes
Need more hiring wisdom? Check these out...
The Hidden ROI of Employee Onboarding: Why Your First 90 Days Make or Break Success
From Passive to Active: Nurturing Candidates Over the Long Haul
Reducing Time-to-Hire: Practical Strategies Using AI Tools
