eFinancialCareers

Private equity funds are stealing hedge funds' mantle as the destination of choice for high flying accountants.

"It's almost as if the film Wall Street has once again become required viewing in the Square Mile," says Steve Forro of Indigo City. "Last year, hedge funds were all the rage; now private equity has taken over."

There are often few differences between the responsibilities of accountants in the two sectors, especially since hedge funds are edging their way into private equity work themselves. Both involve working in small but high-profile teams in dynamic, fast-moving environments.

Earning potential is similar: "Newly qualifieds can expect basics of £50k–£55k, while those with four years' pqe are looking at £70k–£90k," says Forro. "Bonuses depend on the success of individuals and firms but salaries aren't dramatically different from those offered by mainstream investment banks, despite perceptions that hedge funds and private equity firms are gold mines."

Private equity firms – regularly in the news over controversial potential blue-chip takeovers – are attracting the Big Four's brightest talent – but even if accountants seem to have decided they like the Gordon Gekko image, hedge fund recruiting managers need not start unduly worrying.

"There's no staffing crisis at the moment," says Forro. "Given the small number of private equity firms in the City, there are still plenty of people queuing up for jobs in hedge funds."