Banking-like experiences at McKinsey
Haven't been able to find much information on the more technical finance work that it seems like McKinsey in particular does, especially through their NY office. Looking at their website and LinkedIn, they do a lot of corporate finance work and also have a sizable restructuring practice (the one that the WSJ did a less-than-flattering exposé on).
Can someone with previous exposure to these practice areas of the firm comment on the nature of the work and the opportunities it offers a person? It seems like an analyst doing a lot of work in the restructuring practice, for example, would have a great path to distressed funds like Oaktree and Silver Point given the McKinsey brand coupled with a relevant technical background. Am I missing something or is this a unique niche in the consulting world that WSO seems to overlook when saying consulting is always a harder path to the buy-side?
Really appreciate any insight from people who have worked at McKinsey or met people that worked in these practice areas.
Also very curious...
McK restructuring is more akin to Alvarez & Marsal, AlixPartners, and FTI than to the major debtor and creditor RX advisory/financing groups on the street. Probably not a bad experience there, though. Just important to know what you’re getting yourself involved in.
bump
I had a close friend of mine work in the restructuring practice at McKinsey for almost 3 years, and as @standard and poor pointed up there it is a very different experience from RX shops at investment banks.
For instance there is little ppt/excel work and more on the ground line management work. The Partner in charge usually takes on a CFO/CRO and sometimes a CEO position within the company being advised, with the EMs and Associates running point on different work streams during the project. Hope that helps.
I work at one of the top 3 RX consultancies. Based on conversations with colleagues who came from McKinsey RTS (the name of their restructuring arm) the work they do is rather operational restructuring and large-scale transformation (as harveyspanskter says - more ground line management work, greater focus on implementation). McKinsey doesn't typically deliver a lot of financial restructuring work such as cash/liquidity management, bankruptcy procedures, creditors negotiations, balance sheet restructuring, wind-downs etc. This type of work is dominated by A&M, Alix and FTI.
What sort of exits does this afford to distressed debt firms?
Overall I have seen quite a lot of people exit to PE side, usually MM. I personally know one person that went to special situations group in a MF, no clue about the others.
RX consulting is a funny business in a way that it is often the final career destination rather than a platform to build exit ops. RX firms most of the time hire seasoned experts after working many years in the industry, PE distressed firms or RX banking. They come in at a senior level earning very good money given high level of bonuses in this industry. Typically in RX there aren't many junior hires (it's starting to change a bit) looking to go somewhere else after few years. In general, I have probably seen equivalent number of people who came to RX consulting from PE firms to people that went from RX to PE.
What about the corporate finance practice? Does anyone know if they compete directly with banks for certain projects?
Also very interested.
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