Need sanity check on something

Hey all, 

Was trying to learn a little more about hedge funds and was talking to a quant at a pretty good firm, to get a feel for the industry. One thing that got mentioned in passing was the relative levels of technical chops required for different careers in the broader finance space, and in their opinion it went IB -> PE -> RX consulting -> HF. Didn't expect consulting to be there at all, let alone so high, so just want some second opinions on this, and if it checks out, why it's so technical. 

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I’ve done both - rx consulting (debtor side, creditor + UCC is not as good) had much more operational strategy and a wider array of responsibilities. Deals were almost always me, the ceo and cfo working on something consistently. Then you coordinate with bankers and lawyers. You have to know every part of the business and all tangential privileges. Often, the CRO and, sometimes, the modeler/junior will have to testify in court so you really get to know the code, how it works, the intricacies, etc.


I even worked on something where a rather vicious Board led to the CEO and CFO quitting so I ran it to liquidation. 

The work is more diverse, less repetitive and, imo, more interesting. The pay has really escalated in recent years - which is why you’re seeing a lot of rx bankers go to places like A&M and Alix.


Creditor/UCC mandates aren’t bad, but they’re lower compensated (save for a few big ones in recent years) and imo much less interesting. 

I think both roles have value in learning how to do them, but if I had to pick a career in RX - I find the CRO path very interesting and fun to do. 

 

Is it, in your experience, easy to exit between roles (top RX Consulting to top RX IB and vice versa, or is the move one-directional, as in it's easier to move from IB to RX consulting but harder the other way)?

 

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