💼 Tariffs & Aspiring Private Equity Professional's

OVERVIEW

📌 What You’ll Get in Today’s Newsletter

This week, I’ll break down:

📰 Market Shock of the Week: Tariffs, Tension & Tumbling Confidence

💼 Finance Deep Dive: What the Hell Is Private Equity?

🎯 Break-In Blueprint: How to Land Your First PE Offer

🥇 The Edge: 3 Major Hacks to Land Your First Intersnship

MARKET OVERVIEW

📉 Weekly Market Recap – April 7–13, 2025

Markets pulled back this week as geopolitical uncertainty, sticky inflation, and mixed earnings data sent conflicting signals to investors. While the economic backdrop remains stable, volatility crept in across equities, treasuries, and commodities.

📌 1. Trump’s Tariff Warning Spooks Markets

Former President Donald Trump made headlines this week with a proposal to reinstate and expand tariffs on Chinese and EU goods should he return to office. While the move is still speculative, markets reacted as if the trade war of 2018-2019 had just been revived.

S&P 500: ↓ 2.1%

Nasdaq: ↓ 2.8%

Industrials & Semis: Led the decline, pricing in margin compression and slower exports

📊 2. CPI Slows Slightly, Fed Still Cautious

The Consumer Price Index (CPI) rose 0.2% MoM in March, slightly under expectations. Core CPI (excluding food and energy) came in at 3.5% YoY, keeping inflation above the Fed’s 2% target.

Treasury yields dropped slightly (10Y at 3.92%) as rate-cut optimism returned

Fed futures now pricing in a 65% chance of a rate cut by July

🧠 For finance students:
This affects your cost of capital (WACC), bond valuations, and leveraged buyout modeling.
Lower inflation = potential rate cuts = higher present values in valuation models.

🤖 3. AI M&A Activity Accelerates

Significant acquisitions in the AI space highlight the sector's momentum:​

Palo Alto Networks: Reportedly considering a $650–$700 million acquisition of AI cybersecurity startup ProtectAI.

Infineon Technologies: Announced a $2.5 billion acquisition of Marvell Technology’s automotive ethernet business to enhance autonomous driving capabilities.

Implication: AI continues to be a hotbed for investment, with companies seeking to bolster their capabilities through strategic acquisitions.

WEEKLY TOPIC

💼 What Is Private Equity?

Private Equity (PE) is a form of investment where firms buy companies, improve them operationally or financially, and sell them for a profit—typically after 3 to 7 years. These companies are often private, but PE firms also take public companies private to restructure them away from the public eye.

🧠 How It Works: The Simplified Playbook

1. Raise Capital from institutional investors (called Limited Partners or LPs)

2. Find a Company to acquire (undervalued, underperforming, or high-potential)

3. Buy It Using Leverage → a mix of debt + equity (this is where LBOs come in)

4. Improve Performance → cut costs, scale operations, drive growth

5. Exit the Investment → via sale, IPO, or secondary buyout

💸 Why It’s Currently the Most Hyped Path in Finance

Base pay + bonuses often exceed $300K–$500K by associate level

Carried interest gives you a share in profits from deals you help manage

You own the outcome, unlike IB where you’re advising from the sidelines

Tight-knit teams = more responsibility early on

Prestigious exits to hedge funds, VC, or even your own fund

ACTION STEPS

🚀 How to Break Into PE

Most of the time, breaking into private equity requires doing 2–3 years of investment banking first. It’s the traditional route and still the most common. However, it’s becoming increasingly possible — though still rare — to land a full-time role in PE straight out of university by completing an internship at the firm.

One of my best friends actually secured an offer like this, giving him massive hands-on experience early in his career — something that used to be nearly unheard of.

Master technicals – Especially LBOs, accounting, and debt structures.

Start early – PE recruiting happens fast & quietly (even for internships).

Network smarter – Target boutique PE firms for cold outreach.

INTERNSHIP HACKS

⚔️ 3 Make or Break Tips to Land an Internship

✅ Join a finance club & get involved – It shows initiative and gives you access to a built-in community and alumni network you can tap into. The majority of students landing top internships are often VPs, Presidents, or Board Members of finance clubs. It shows genuine interest in the industry and a willingness to lead — something recruiters notice right away.

🔁 Once you land one internship, doors open faster – Leverage that first win to build a chain reaction. I went from 0 internships to 5 in 6 months. This was extremely easier after the first.

🎯 Send 100 cold emails per week – Tailored cold messages with specific deal mentions or firm insights get replies. If you don’t send at least 100 emails i’m telling you, you will not land an internship. Targeted volume is important (email blast all the alumni)

BEFORE YOU GO!

Here’s How We Can Help You

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See you tomorrow.

- Jai 

Founder of TheFinanceGrind