What is the difference between private equity and investment banking?

Private equity and investment banking both help businesses find, develop and grow capital, but each does it in a different way. A private equity firm buys assets itself, looking to grow those assets and profit off of each down the line when they are sold. An investment bank primarily sells assets for another party.

Is private equity more regulated than investment banking?

The private equity industry is considered to be less regulated than investment banking. The logic behind such an approach is that private equity funds usually deal with sophisticated and wealthy investors who can take care of themselves.

Is investment banking a good job?

Investment banking and private equity are both well-paid jobs. According to the data presented by Glassdoor, the salary range for private equity and investment banking associates is pretty similar. However, the compensation ceiling is much higher in private equity than in investment banking — $2 million per year compared to $600,000 per year.