Providence Equity Overview
Providence Equity Partners, located in Providence, Rhode Island, USA, is a private equity firm which specializes in media, education, communications, and technology investments across Europe and North America.
The firm manages over $21 billion in capital commitments making it one of the largest global players in the private equity world. Providence is also one of the pioneers of a sector-based approach to PE investing.
The firm’s investment approach which helped them become a leading sector-focused investor stems from their sharp focus, strong value creation capabilities, deep industry expertise, and earnest collaboration.
Their investment strategy consists of five pillars:
- Specialized Industry Knowledge
- Thematic Investing
- Middle-Market+ Focus
- Buy-and-Build Capabilities
- Partnership Approach
Jonathan Nelson founded Providence Equity in 1989 and is now the firm’s Executive Chairman.
Providence Equity AUM
As of March 30, 2023, Providence Equity has $21.9 billion in assets under management according to most recent regulatory filings.
Providence Equity Interview Process & Questions
Firms can change their interview process with each candidate as they see fit. However, you’ll find consistencies in the general nature of the process if you interview at Providence Equity (or a firm like it) such as the following:
- The process consists of 4 to 6 rounds of interviews
- For the initial interviews, the HR team or junior investment professionals will supervise the process. For the later rounds, the more senior folks will be in charge.
- The entire process typically takes several weeks (unless it is “on-cycle” or “on-campus” recruiting)
Anticipate interviewers to ask a mixture of behavioral questions, fit questions, and technical / investing questions.
For in-depth lessons and guidance, check out my Growth Equity Interview Guide.
Why Providence Equity
Firms often want to know the specific reasons behind each candidate’s interest to apply. That is why you’ll almost always get asked the crucial question “Why this firm?”
This is the perfect opportunity to mention whoever you’ve met at the firm and how they’ve made a really positive impression on you if you did some networking prior to the interview.
It’s also advisable to do research about the firm.
One of the best ways to learn about a firm is to hear the thoughts of the firm’s founders, investors, and executives. For this, I recommend listening to their interviews and podcast guestings.
For example, here’s a great interview with Jonathan M. Nelson, Founder and Executive Chairman of Providence Equity Partners:
- Jonathan Nelson on the future of media and its implications for investors
- Jonathan Nelson sits down with Bloomberg’s Jason Kelly to discuss private equity and the streaming wars
Providence Equity Case Study
Case studies are an integral part of interviews at firms like Providence Equity because these exercises help firms to assess their candidates’ technical knowledge and communication skills.
Most case studies revolve around investment recommendations and financial modeling. But for junior roles, a cold calling case study may be required as well.
To help with your preparations, I’ve tackled case studies in great detail inside my Growth Equity Interview Guide.
Providence Equity Salary & Compensation
According to Glassdoor, the estimated annual pay for analysts and associates who work at Providence Equity is $94,107 and $111,019, respectively. These figures are median and can still change depending on many factors like experience, education, and skill level.
Based on other public data, recent associates at Providence Equity have earned $115,000 per year, while there’s no recent data for analysts.
Providence Equity Careers, Jobs, & Internships
To see what roles are currently open at Providence Equity, check out our job board which also has a list of job vacancies from similar firms.
Providence Equity Portfolio & Investments
According to Crunchbase, Providence Equity has made 55 investments since inception across seven funds. They also made notable deals such as Hyve, Worldwide Express, and EdgeConneX.
Notable Transaction: DoubleVerify
DoubleVerify (DV) is a software platform made for data, analytics, and digital media measurement. DV aims to be the reliable source of data-driven and transparent insights into the effectiveness and quality of digital advertising for the largest publishers, brands, and ad platforms.
DV provides advertisers with unbiased and consistent data & analytics which are used to optimize performance and ROI from digital ads
On August 23, 2017, DoubleVerify (DV) announced that it had agreed to receive a majority investment from Providence Equity.
As per Davis Noell, managing director at Providence Equity Partners, the largest brands in the world face transparency challenges in digital advertising and DV’s solutions are helping solve these concerns.
They believe that DV still has so much potential and look forward to work with them to help accelerate their growth.
Providence Equity can be the right fit for you if you’re interested in media, education, communications, and technology investments. The firm is definitely an excellent place to develop your career in finance.
If you want to send your application to Providence Equity and make sure you stand out from the competition during the hiring process, I highly recommend you check out my Growth Equity Interview Guide.
It’s a self-paced online course which will help you get a good grasp of growth equity concepts (such as market thesis, valuation, financial modeling, and many more) which typically get asked during interviews. Take a peek and start learning!