What exits are possible from a boutique firm?
Currently working at a boutique strategy consulting firm that is solely focused on the payments (and fintech) sector. So far, much of the work is interesting, with projects such as pricing analysis/strategy, new product launch validation, and commercial due diligences.
Unfortunately, pay is quite low (i.e., in line with audit starting salary, VHCOL) so I am looking to move in the near future to increase compensation.
From a boutique firm like this, what exits are possible? Are the exits going to be primarily in the payments/fintech area, or would opportunities in Big Tech also be possible? If payments/fintech, are companies such as Stripe possible, or would it be better to focus on Series C/Series D paytechs that seem to have gained traction?
Further, any insights into what sort of salary to expect would be much appreciated. I assume it would be a substantial cut from what could be expected from MBB, but want to make sure I am not underselling myself as well, ending up in a situation where I accept a below-market comp (e.g., currently thinking 160k-180k TC, given 4+ years experience - 2 of which were in strategy consulting and 2 somewhat unrelated).
Exiting from a boutique strategy consulting firm focused on payments and fintech offers several pathways, though the scope of opportunities may be influenced by the niche focus of your current role. Here's what you need to know:
Exit Opportunities
Payments/Fintech Companies:
Big Tech:
Venture Capital (VC):
Corporate Strategy:
Private Equity (PE):
Compensation Expectations
Key Considerations
In summary, your boutique experience positions you well for roles in payments/fintech, Big Tech, or even VC/PE. With 4+ years of experience, aiming for $160k-$180k TC is reasonable, but you could push higher depending on the role and company.
Sources: Q&A - Consulting interview prep - firm specific questions, Lesser known MBA career options? Looking for advice on what to do post-HBS., Investment Banking Analyst: A True Day in the Life, From trader to consultant, Q&A: Business Analysis at F500 Firm
I've been out of the recruitment landscape a little bit and am based in a different country than Canada, but I have a few thoughts.
The Big Four Accounting firm's consulting arms all have some form of technology implementation and banking and payments work. You also have the option of jumping to a well-paid finance and tech shop: Accenture, Oliver Wyman, CGI, IBM and others all come to mind. You could go to industry directly: Master Card, Capital ONE, Visa, or other industry players in payments such as Google's Google Pay team, or really anywhere in the ecosystem you find exciting.
You could also consider prof. services outside of consulting, namely VC shops specialized in Fintech that look at Seed, Series A, B or C could provide some great exposure as well. I only really known Georgian for Fintech, but I imagine there are others you can seek out.
Give you have four years of experience, you'd quaify as a lateral in consulting (typicaly 1.5 - 3 years) with a bit of a discount on your non-consuting experience. You should honestly create a market map of the firms in your area, and begin reaching out to existing folks in the team to gauge the demand and hiring landscape.
Finally, on the note of Comp, the old comp structure I recall for New Grads,
Accounting Firm Consulting Arms - $85-95k Base + 10-15% bonus.
Now for Lateral comp, I've heard $110-$130k base with 15-20% bonus for non-MBB and $120-$140k Base for MBB. I'd say it would be quite tough for you to place $160-180k USD TC without an MBA; not saying it can't happen, but the majority of roles will pay less.
What I'd aim to solve before pay, I'd say you should ask what industry to target and what skillset you aim to develop. that will determine a lot. The realm of VC operates very differently than Management Consulting or industry shops like Visa/Mastercard. They all have different core responsibilities, progression and opportunities. Think long and hard about where you see yourself (product manager in start up, VC research analyst, consutant/experienced hire in consulting, etc.).
Super helpful, thanks! I think at this point, I would say that I've determined I would want to move out of consulting, so that would eliminate MBB/T2 firms as a potential next step. Ultimately have found the fintech side of things to be a bit more interesting than working directly with payments-specific companies like the card networks and big banks, so will need to look into this a bit more.
Sounds like setting up some coffee chats with firms in various parts of the industry might be a good way to explore where specifically I see myself longer-term.
I used to work at a similar firm. Myself (and a decent number of people) ended up lateraling to T2 / MBB, though some people exited to tech (both bigtech and startups but not FAANG tier) as well as some of the large companies in the payments space
Excepturi quia est id quis consectetur nihil. Explicabo assumenda non totam suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...