How to move from MBB to PE
Can anyone comment on the best way to transition from MBB (analyst level) to PE? I'm joining an MBB office in the fall and understand that PE recruiting generally happens very quickly after that (April/May). Would it be useful to learn/practice some financial modeling before I start work so I can even be considered for interviews? Anything I should be doing well in advance to prepare?
Any advice or experience is helpful, thanks.
It depends on which MBB you're at. In terms of PE recruiting, Mck>Bain>BCG. BCG guys can (and do) make it, but for the sake of our sanity, let's assume that you're at McK/Bain. Your best bet among Mega-Funds is obviously Bain Capital. For technicals, pretend that you're an M&A Banker, and learn accordingly. But don't fall into rote memorization, make sure to understand exactly why something happens in a model. Get into the nitty gritty of it all. But from my experience, if you're doing it right, technicals should be the least of your worries. Behavioral/fit is by far, the most important part.
Read CompBanker and 10xleverage's threads for more info.
On a related note, how common is it to move from an associate (post MBA) role at Bain/McK to PE? If it does, how long past the MBA does it typically occur?
this question must get asked 100000 times, but again, going into PE post-MBA without prior PE experience is EXTREMELY EXTREMELY difficult. it's an uphill battle you dont want to be a part of. currently, it's hard enough for a pre-mba pe guy to get a job in pe post-mba. its that competitive.
Best way to transition: use headhunters. All the top PE funds use headhunting firms for their pre-MBA associate positions. Top headhunting firms include CPI, McKibben, Oxbridge, SG Partners, Amity Search Partners, Henkel Search Partners, and Stephen James Associates.
Timing: send the headhunters your resume 6 months after beginning work (so Dec/Jan timeframe). Recruiting seems to be getting earlier and earlier each year (although this year the big funds have agreed to wait until late summer / early fall ... we'll see if that really happens). Recruiting will likely take place in April/May (so like 9 months after you started working).
Preparation: depends on the funds to which you plan to apply. If you plan to focus on funds that have a history of hiring MBB consultants (Bain Cap, Berkshire, Advent, Charlesbank, American, etc.), you probably won't need to have as much financial modeling expertise as with some other firms better known for hiring bankers (KKR, TPG, Apax, Carlyle, etc.). The key is to earn excellent ratings at your MBB. The PE firms use MBB as a screening tool for their candidates - if you can perform at a high level at MBB, they assume you must be intelligent and capable of being a PE associate. Also, make sure to do a few engagements where you own the model (in consulting, models are typically operating models, versus LBO models in PE, but that should be fine for interviews). Caveat: if you do plan to apply to KKR, TPG, etc., you'll need to know how to pass the LBO modeling test you're likely to get in the interview process.
Before you start, think about the type of PE firm you want to join. There are pros/cons to megafunds versus mid-market, generalist versus industry-focused structures, NYC versus Boston versus San Fran, etc. Unlike consulting, where there are a very small number of top firms, there are literally dozens of great PE firms. So you'll need to triage in advance based on your preferences.
Btw, ledger123 is right. Getting in post-MBA w/o prior experience is essentially impossible. Maybe doable at a tiny fund where you've networked your way in, but that's about it.
Consulting to PE - What are some big/top PE firms? (Originally Posted: 02/14/2007)
What's the word on moving from consulting to a PE firm? I understand that coming from a top consulting firm (MBB) there are a few top firms that will take a look at you, and some that will not--is this true, and if so, what are some of the big/top PE firms that hire only 100% bankers as new associates?
Check out Golden Gate Capital.
I've been told that TPG has taken McKs before.
in addition to Golden Gate almost exclusively hires consultants and is obviously a top notch mega-fund fund
Thanks. I did know about those two but I was wondering more generally if most firms are open to hiring consultants or if they simply cannot because they do not want to train them modeling skills, and also specifically which of the mega funds other than Bain Cap would do so (e.g. TPG, Blackstone, THLee, Warburg Pincus, etc.).
Several of the better middle market firms hire consultants. In addition to Golden Gate, Berkshire, AEA, and Charles Bank all regularly hire consultants, mostly from Bain. The other megafunds are also beginning to move in that direction. Blackstone hired someone from McKinsey last year and TPG had an interview round that was only consultants.
I don't have personal experience here but I've heard that more the PE firms are taking more bankers lately because of the ever-increasing complexity of financial transactions and strategies.
Consultant from M/B/B trying to break into PE (Originally Posted: 03/25/2007)
Going to work this year at one of the top 3, wondering how I should prep myself to increase odds of getting a PE offer post-consulting.
I was thinking that I should try to specialize in Corp. Finance with some PE Due Diligences here and there. Any advice from consultants who made the move into PE? When did you enter? How did you do it?
Thanks.
If you're with Bain, try to work to do a PEG rotation.
If you're with McKinsey, try to join their corp fin group.
I'm not sure about BCG.
Consulting --> PE (Originally Posted: 07/13/2010)
Currently I am an analyst at a tier 2 consulting shop - think Deloitte, Accenture, Booz
I am interested in getting into Private Equity at a MM Shop with a focus on growth equity.
A couple of questions:
1) is it possible to make the switch directly from one of these firms to a MM PE shop? If so, at point should I be looking to apply? After year 1, year 2, or year 3?
2) Would it be beneficial for me to join an investment banking firm for a couple of years to get the quant experience under my belt? If this is the case, at what point should I look to get this experience? Also, what firms would be more inclined to hire somebody with my type of background?
3) Does anybody have a list of these growth equity PE firms in the NYC or Boston area?
Thanks in advance.
yes, but very difficult. you should be looking to apply at all points given how difficult it is. aka always be networking, interviewing, etc.
yes, banking will greatly increase your chances. so will starting your own co. leave as soon as you find a job that will teach you move and put you in a better position for growth equity. i.e. technology banking, established start up companies, or smaller companies.
look up every firm in private equity and look at their associates. if they have hired an associate with consulting backgound, it means they will consider you. example: golden gate and huntsman gay
Bump. Anybody else who has had experience with this?
.
How about coming out of 1 or 2 years at Bain or somewhere else doing PE consulting? This should obviously make your chances better, but realistic actually is it?
tier2 consulting to PE (Originally Posted: 03/04/2013)
Currently, I'm at a tier2 consulting firm (one of few decent firms below MBB). Is there a best strategy to break into a good PE shop?
Not sure how much MBA would help if I do not get any good buy-side experience before it.
I am interested to hear the answer to this as well
What do you consider "good"?
I think it would make sense to switch to a MM PE fund and THEN get your MBA.
It's very difficult--there are a limited number of funds that hire consultants, and they pretty much all can draw just from MBB.
But for general tips off the top of my head: --Network, and in particular be proactive in reaching out to headhunters --Try to get on relevant cases where possible (e.g. DD work) --Honestly, target smaller/less regarded funds to some extent. It's kind of harsh, but you have almost no chance of ending up at a Bain Cap or Berkshire-type place. Those guys can already skim off the top 10% of MBB analysts (and do). Consider focusing on someplace else (something like Lee Equity or maybe Charlesbank comes to mind as examples, but I'm not as familiar with that chunk of the market)
Lastly, undergrad pedigree/etc can help to some degree. Recruiters do sort for things like undergrad, GPA, SAT scores, so you'll be better off if those are strong.
Oh, and definitely get PE experience before getting your MBA.
agreed, it will be very difficult to make this move. I can imagine that for some smaller funds they may consider you but most large cap PE and respected MM PE funds will solely look at MBB if outside of banking. Nothing is impossible so a solid network will give you a good head start and can open doors. Contact headhutners in the MM space and yes def get PE experience before an MBA
Looking to break out of consulting into PE (Originally Posted: 10/21/2010)
Long time lurker, first time poster.
To make a long story short, I want to get out of technical consulting and into private equity, specifically with Carlyle.
Here's the story: I have a physical sciences Ph.D. from one of the HYP schools, worked as a broke ass academic from 2000-2009 before I realized that I was not going to be a professor anytime in this life. I became a consultant in the government practice of a sub-MBB consultancy that rhymes with Snooz. Said consultancy was recently bought out of Carlyle, and I want to get promoted to the mothership.
Got a few questions for the experts here:
In general, does it help to work at an acquisition target of a PE when you are applying to that PE firm? I am busting my ass trying to learn all the ins and outs of the business so at the least I can tell them that I can give a decent insider's perspective as to how their multibillion dollar investment is doing. Knowing where all the bodies are buried, etc.
I feel my finance background may be lacking. Looking at the quals of the team roster at Carlyle, a lot of these guys have serious finance or accounting backgrounds. As an undergrad I was double math and econ, and actually did an IBD internship at Credit Suisse. Also, I did a summer of quant work pricing options in a math department. Beyond that, I took some corporate finance and capital markets courses and an accounting course at the b-school to which my UG college was attaced. But that was all 8+ years ago. Is it even worth leaving this on my resume?
And how long should I stay here before I bail? I've been here just over a year. I'm thinking 2 is a respectable number, and enough time to actually learn something. I ideally would get into their fall 2011 recruiting cycle.
If Carlyle hates me, are there any other PE/VC exit ops that are realistic for a 30yo with a technical Ph.D. and 2 years of consulting experience?
This is probably depression talking. I had my year end review recently. I was ranked in the top quartile yet I effectively got a pay cut because my raise won't even cover the amount by which my rent is expected to go up. Seriously bummed.
Dude, with a PhD in math/physics etc. from Princeton, you should be aiming for the top quant hedge funds. You'll get a job no problem if you market yourself well and network.
Try www.quantfinancejobs.com. Get in touch with some good headhunters to look for you too.
Consulting to PE - The transition from consulting? (Originally Posted: 01/02/2010)
I was wondering if anyone can describe the transition from consulting to private equity. I am aware that this is a less common path, but how does the process work differently than bankers?
Do you still use headhunters to get the jobs, or is there a centralized process within consulting firms to help you place in PE shops? i would be glad if someone familiar with this process can share his experience.
A: wrong forum B: very hard to do so unless you are MBB and even then its harder than coming from the lower boutique banks unless its a bain friendly pe shop like that one PE firm around here. Same stuff as everyone else, you network and talk to headhunters and pray. If you aren't MBB just don't bother.
Hey bark,
-
This has been covered in excruciating detail - do a search.
Not that hard
Some PE partners were Consulting partners. Lots of my frends who did consulting in the corporate finance groups at McKinsey and Bain now do PE - all depends on experience
Depends on your consulting firm, your region and the PE house.
Region: Much easier in Asia, more challenging in US. Not sure about Europe.
Consulting Firm: MBB will very much preferred. Any other consulting firm will have a much tougher time. Mgmt consulting is almost a must. Forget about tech consulting firms such as Accenture.
PE House: PEHs such as Bain Capital and Audax like consultants a lot. Majority of the well-known PEHs will prefer bankers though.
In Europe it's actually easy coming from McKinsey and Bain and ok if from BCG or a good non-MBB firm. This is for consultant friendly firms though, and the mega funds seem to prefer bankers indeed. It's definitely impossible coming from IT or process consulting, and while I personally don't know of any Accenture people in PE for example, I could imagine consultants from their strategy practice making the move.
I see, thanks guys.
I was actually just wondering about the application process in general. After having done a very centralized job application process through University Career Services, I want to know how it works once you are actually in the workforce. I know I may sound like a retard, I just don't really know how the whole thing works
you usually have a contact at a PE firm, especially if you work at MBB, and you forward your credentials to him/her, who then works with HR to decide on all applicants in determining who gets an interview
Moving into PE from Consulting (Originally Posted: 12/29/2011)
If you manage to get into PE from a consulting background, will you ever catch up to your peers from BB IBD backgrounds in terms of analytical/modeling skills?
Nope, at MBB they install a mind-control chip that makes it impossible to learn modeling.
MBB to PE in New York (Originally Posted: 04/20/2010)
Hi everyone,
I am currently at a pre-MBA consulting job with MBB in New York, looking to get into PE next. I know several of the PE firms that tend to hire management consultants are based in Boston and the West Coast. Can anyone here point me to New York-based PE firms (of any size) that are particularly consultant-friendly?
Thanks!
new mountain bain cap has a nyc office
Thanks - any others? I'm under the impression that Bain Cap's NY office is small and doesn't usually hire associates.
If I'm looking to stay in New York, what other possibilities are there? How much would I be limiting myself if I made geography a primary criterion in the search?
consulting focus to PE (Originally Posted: 10/17/2011)
If my goal is to go into private equity from consulting, does it matter what field I should focus on during consulting? For example, does it help to have a lot of private equity consulting work under my belt as an associate, or am I better off focusing on an industry in consulting like pharma or biotech?
You should go for a mixture really. Getting due diligence experience is obviously great but also try to add some 'portfolio' work i.e. restructuring, normal growth strategy projects, etc. You should ensure to cover many different industries also, avoid getting pigeonholed early (which isn't always easy given the staffing dynamics in consulting if you're not careful).
That definitely makes sense. Any other opinions?
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