RX Consulting Pay
There’s been a lot of discussion on this forum about RX consulting, particularly around compensation being comparable to IB (at least at A&M). Could anyone provide some insight into the pay ranges at T1 and T2 RX consulting firms?
Just letting you know before people respond, that for many RX consulting firms, comp is extremely opaque and variable. Look at province for example, they don't have a dedicated job board, just a resume drop. Realistically, all you can go off are anecdotes at that point. Even at T1's pay can be very variable.
It's extremely variable, as a user has already pointed out. At T1 firms (assuming you mean Alix and A&M) comp will fluctuate very widely depending on state of the economy and (especially at A&M) how much you want to work. A&M is a wild card, though, where comp can be in line with all other T1/T2 firms, which aren't typically as high as IB, or can match the top M&A shops (assuming that IB Analysts are making between 150-200K all in). For direct numbers, I've heard of analyst comp at A&M range from 110K-290K TC. But I don't want to make it seem like this is just easy money. The guys making this are working 90+ hour weeks and dealing with extremely stressful situations. As for the others, it tends to go down in TC as you go from T1-->T2 etc. Aside from A&M, rest of T1 comp is in line or a little below LMM IB, but this changes once you hit Director+ level, where you will be paid based on what you bring in, which is pretty standard in any finance/advisory profession. T2 also deviate based on firm. I know guys at all of them, and they vary greatly, but lots of guys have it wrong on here from what I've read recently. Province isn't paying crazy amounts of money in-line with A&M and BRG isn't low balling their entire RX department, which is a misconception I've seen a couple times on here. BRG has upped their RX compensation after winning mega deals and was told brought on few hundred Mill PE backing recently. Everyone must be confusing Province with M3. M3 numbers are more in line with Alix/FTI (less volatile and lower upside however) with associate comp at around 150K with 50-100% bonus. Portage is similar but maybe a bit higher than M3. I have no insight on MERU, as it is so new, but heard their comp is rivaling M3. As for the rest of these players, BRG, Province, Ankura, CR3, Teneo, you won't be making IB money, probably 20-50% lower, but they are extremely solid foundations to start a career if interested in the space and it will be doable for you to swim upstream with higher pay in the future.
My coworker who got into BRG a year or so ago gave the following amounts:
Associate: 85-100k base
Sr. Associate: 95 - 123k base
Consultant: 115 - 135k base
Bonuses were apparently absolutely atrocious, being less than 10% in general. Personally I wouldn't call that the highest.
That's funny because my BRG insight came from a current Managing CO there. Last year as a consultant he made around 190K all in. I've worked at two T2s and am at T1 rn. I know a large chunk of the Boston BRG team and know they pulled in more than 150K by Yr3 so maybe your coworker just guessed some of those numbers.
This is not what I’ve heard from a buddy currently working there. I’ve heard bases were roughly the same but bonuses much higher than 10%. Also, you start out as an associate from undergrad.
Damn, that’s it?? That is crazy, but makes sense for a creditor dominated model. Can get 30-50k more on your base by going to small MM debtor shops and probably work around the same.
Fun fact - BRG was sending fee apps for 40 hours just on fee statements when I worked across from them lol. Trustee was less than pleased.
If your fee app takes 40 hours then you’re either an idiot or committing fraud.
Alright, I will bite for FTI. All of these numbers are just based on my own experiences and what I heard from other folks. The pay lag is there compared to A&M and Alix.
For C, think we start UG around ~$80K
For SC, it can vary between $120K to $150K
For D, think it goes from $150K to $220K
For SD, from $220K to $270K
Bonus varies since there is a quarterly bonus tied to utilization but would say total bonus (including the utilization piece) is around 30% to 50%, assuming you are utilized and have good ratings.
Why do people work there then?
Based on what I know, FTI is a better place to start if you are new to RX since it provides a better learning environment and more junior friendly. The way Alix and A&M operates is more for established folks. To get the killer TC at A&M, you would need to be highly utilized as the base is nothing to write home about. The type of hours might not be suitable for everyone. The bonus at Alix is more like a black box.
well, 99% of ppl in US work for less
Creditor doesn’t make as much as debtor side, but you don’t have to fly out every Monday and home every Thursday, don’t need to do as much bankruptcy time recording and the work is much more predictable + straightforward and you work with BSL syndicates a lot, which is good for exiting to workout or syndicated lending. A lot of debtor deals, you walk in, get your arms around everything, meet the sociopaths in charge and then say, “what the fuck” when you see how shit their books are and all the mistakes they’ve been sitting on. You work very closely with bankers and lawyers.
I got started creditor side for an ex-rx banker I used to work with and it’s pretty cushy at the MD level, great WLB. Moved debtor to get into distressed investing. Loved the job, pay was often better than banking and learned a ton. But it takes a ton out of you between the hours and travel. Hard to have a balanced life if you’re at a good shop.
It’s just a matter of preference for what you want out of life and it’s not too hard to switch between them early on.
Just adding a data point:
Ankura 1st year director: $185base + 40-60% target bonus = ~$260 - $300TC
Would be helpful to mention that the title of D is far different than VP/MD within the banking realm. Director at Ankura is achievable after Yr 3-5, so this isn’t the equivalent of a VP in IB or even traditional strategy consulting.
Adding data point:
Manager (4 YOE) at Huron
$180K base and 40% Bonus target
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