MBB -> PE Offer: Q&A
There's a ton of content on WSO dedicated to PE recruiting for bankers, but less for consultants. I'd like to change that. Especially with headhunters starting to reach out for 2021 recruiting, hopefully this can be helpful to any consultants thinking PE.
Quick context:
I started at MBB last fall/summer and recruited for PE in October. I targeted consultant-friendly firms, and ultimately accepted an offer a firm in the Bain Capital/Sycamore Partners/New Mountain Capital/Berkshire Partners/Golden Gate Capital/H&F grouping.
Background
Non-target undergrad, but high (3.9+) GPA and significant extracurricular leadership. Getting into MBB from a non-target was a significant battle, but with MBB on my resume my undergrad never seemed to be an issue during PE recruiting.
Ask me anything
I'm happy to answer any questions about either * what the recruiting process was like or * what consulting has been like so far. Ask away!
I identified these types of firms by a) searching for "consultant-friendly PE firms" on WSO and b) looking at the "team" page of the fund's website. If they had a decent % of Associates that were former consultants (maybe 30% or more?) I'd call them consultant-friendly.
Comp is significantly better in PE, and will only continue to get better as you rise the ranks. That said, promotion is much more difficult in PE than at MBB. Some might say that's the risk/reward tradeoff, but I truthfully don't see the risk. I plan to leave my MBB on good terms, and if for whatever reason PE isn't the long term fit for me, I'd be welcomed back to consulting.
If you're at BCG and you want to move to PE, you'll be fine. Yes you'll see more Bain and McK folks in PE, but I think at least part of that is selection bias. I know there are BCGers at many of the top consultant-friendly PE funds, so don't think it should be a huge issue.
Thank you!
I would say the key to headhunter meetings is to go in with a compelling story that explains why you're interested in PE and what you're looking for. For me it was: "I studied business in undergrad and had the opportunity to be part of a student investment fund my senior year. That experience taught me a lot about valuation, and showed me I love thinking critically to take a stance on an asset and develop an investment thesis to support it. I has joined MBB to get a well-rounded education in terms of how to think about business strategy, and while I love consulting what excites me even more is using those strategic thinking skills to analyze the competitive positioning of a company and determine it's attractiveness as an investment. So naturally I'm interested in PE, specifically funds that are open to consultants and cut $50M+ equity checks."
I would say after I told that story, most headhunters got it and were open to helping me find those types of opportunities.
If I leave PE, I'd have to come back to MBB one level below EM/PL/CTL regardless of what level I left at. Only difference is if I left as a VP, it would probably be a quicker path to a more senior leadership position than if I left as an Associate.
No banking experience.
I would say the best way to prep get on commercial due diligence projects. I didn't do this and while it didn't hurt me, I have friends who did these projects who say it really helped them.