Rx Consulting

This industry is filled almost exclusively by individuals from non-target school backgrounds. Even looking at the backgrounds of the current leadership and founders at places like Alvarez, FTI, and others, it’s mostly former accountants. Yet I think comp is pretty good? Why no people from target schools?

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Restructuring has a more mixed background because it values actual technical skills over just pedigree. A lot of RX firms grew out of accounting and advisory, so they naturally pulled from Big 4 and other places where people actually know how to work through distressed situations. If I'm being honest, RX consulting probs requires more technical know-how than IB or PE given how granular RX models get. Target school kids usually chase M&A or PE since those have more "prestige," and RX firms don’t recruit as heavily on campus (Alix for example doesn't recruit for RX on campus). "Prestige" in the sense that if you want to go that career path, IB and PE  is top of the line in prestige, whereas in RX consulting, most consultants exit into / try to exit into C-Suite or stay in consulting given the extremely high comp & cool work, so it's an apples to oranges comparison. That said, plenty of people from top schools still end up in RX, especially through EB IB restructuring groups (PJT, HL, EVR, etc.) or lateraling in. It’s just a different recruiting pipeline.

 

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