Stick with MBB or pivot to PE Ops to get to long-term operating role
Hi folks. Currently in a top MBA program. Prior to this I was a manager (generalist) at an MBB firm. Also have a couple YOE in startups, mostly in CoS roles where focused primarily on go-to-market, strategic planning, people ops. MBB and startup experience is probably 40% traditional strategy and ops, 50% climate (mix of corporate ESG strategy and disaster resilience).In 10 years, I'd like to be in an operating exec (CEO, COO, SVP/VP of key P&L, etc.) in a business that touches the climate crisis in some way. Pretty flexible about how - business could be renewables, clean tech, water management, ESG software, etc.I'm trying to decide whether it makes more sense long-term to 1) return to my MBB and push to partner, then exit from there or 2) pursue a PE CxO program (e.g., Shore Capital, Access Holdings, Alpine - all recruit at my MBA program). Also open to options I may not be thinking of.
I find the opportunity for immediate P&L ownership and leadership experience in a CxO program compelling. But I also have really enjoyed my time at my MBB - I have a strong network of supporters and consistently get to do climate-related work, can live anywhere in the US.
Comp-wise, I expect to earn ~300k in my first full year back at my MBB (not counting the value of my MBA sponsorship, which is worth ~90k per year pre-tax for the first two years), ~330k the following year, and 350-500 upon being promoted to Principal/AP. Partner (probably 4-5 years after returning) would start at ~700k. I have no reference for what to expect for comp in CxO programs.
Anyone pursued a similar CxO program and have reflections? Any consulting/PE folks have perspectives on best bath to long-term goal? Really appreciate it!
Hey there! It sounds like you're at a crossroads, and it's a tough one. Both paths you're considering have their own unique benefits.
Returning to your MBB firm could be a great move, especially considering your strong network of supporters and the opportunity to continue working on climate-related projects. The potential for career progression and salary growth is also quite appealing.
On the other hand, a PE CxO program could offer immediate P&L ownership and leadership experience, which could be invaluable for your long-term goal of becoming an operating executive in a climate-related business.
In terms of compensation, it's hard to say what a CxO program might offer without more specific information. However, it's worth noting that these programs often come with significant equity stakes, which could potentially be very lucrative.
Ultimately, the best path will depend on your personal preferences and long-term goals. If you're more interested in gaining hands-on leadership experience and potentially making a big impact in a smaller organization, the CxO route might be the way to go. If you prefer the stability, network, and potential for progression at your MBB firm, then returning there could be the better choice.
Remember, there's no one-size-fits-all answer here. It's about what feels right for you. Good luck with your decision!
Sources: MBB to PE, CorpDev to PE prospects - creating a long-term map / success stories, Can someone break down PE Associate exit opportunities?
Bump!
Do the PE CxO program. You'll get direct operational exposure to PE-backed businesses and gain the experience needed to achieve your long-term goal. Making it to partner in MBB is not a given and would take at least 10 years just to get to that stage.
Also most PE CxO programs pay on par with MBB post MBA if not better with equity options.
I'd echo the above. I have 3 main reasons why I think it's a great move if offerd:
1) Keeps your options open. You can always go back to MBB after being an operating partner--maybe the market will have to settle down a bit, but realistically, you've now got real, true, ACTUAL experience in PE ops CxOs just simply won't have, and that insight will make you an absolute killer on whatever case you lead--if I were buying a case team, and I saw that profile, I'd prioritize your experience. If you don't want to go back, then great, you're in a perfect spot.
2) Pay. This isn't going to be a long term pay cut, especially as you move up in portfolio operations and as you begin receiving the equity with it. If you are the kind of person that can drive a company to 2x EBITDA, then that firm will NEVER let you go and will keep you around as an executive in residence, and you'll out earn the partners at MBB--and if you don't, then you'll be damn near on par, or the difference will be so small that you don't notice it honestly.
3) Fun. Portfolio work takes the bullshit of consulting out--you're not doing additional work as a backup, you're not spending a quarter of the time trying to sell the next case, you're not doing stupid turns on work that doesn't need turns--you work on the most important, pressing, cash-generating or cost-cutting parts of the business, and you get to have tangible, quick, REAL impact.
Nothing to lose going the CxO route.
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