Honest question - Would you rather MBB if you don't land at a top bank?

i've been reading a lot about how MBB probably places even better than banking per capita for PE.. and I've been thinking that if I don't land at a GS/MS/JPM/EB ( pjt,pwp,laz,evercore,moelis,centerview), then i would honestly rather try to get MBB than be at citi/greenhill/barclays, etc. Thoughts? I'm dead serious since I don't havea a preference between banking and consulting, just want to be in PE after 2 years

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As an MBB consultant you wont be competitive for PE unless you've been very intentional and strategic about the cases you've worked on in your first few years. Staffing is driven by availability, politics and luck. You could want to be on a DD project but that doesnt mean you're going to get it.

If you arent working on the right DD and transaction oriented projects in your first few years at MBB then you've probably fucked yourself for PE.

In banking you are almost guaranteed to get that right kind of work for PE.

Also OPs logic is pretty dumb overall. Consulting and Banking are very different lifestyles and have different required skillsets. Just doing one to get into PE sounds like a terrible mindset for success in ones career.

 

Agree with everyone else saying MBB is not the best path to PE. I was very on the fence between IB/consulting so did a lot of networking and ended up going IB. Obviously people make the jump, but it's very difficult and not as structured of a process, headhunters don't reach out, etc. Just because people are able to make the jump from MBB to PE does not mean its an easy path.

I'm at a non-super top bank (think Jefferies type), and I still think my changes at PE are a lot better than at MBB. People from my bank go to PE all the time, there are bank alumni at all sorts of PE firms, and even if I don't get MF my chances at UMM/MM are pretty good. I know plenty of people at MBB who weren't able to make the jump to PE of any kind just because it's not a well trodden path.

Also, people on here are crazy if they think it's easier to get MBB compared to GS/MS/etc. MBB is arguably even more selective with only recruiting at target schools, and their acceptance rates are extremely low. Sure, good candidates don't get jobs at GS because there's an element of randomness, but I would be absolutely shocked if someone who wasn't able to land a job at any BB/EB was somehow able to land an MBB job. At my ivy, I would say the best candidates probably go buyside or top IB (top EBs and GS/MS/JPM), the next best kids go to MBB (though many of these kids could easily land top IB jobs if they wanted), and the next tier down go to next tier IB jobs like top MM, WF/RBC, etc. Most of these kids would not be able to land an MBB job even if they wanted.

 

Happy to offer my two cents (will also do an AMA this week, so can answer specifics there).

I would say that your odds of landing a job at a more prestigious PE shop are higher from MBB than most investment banks, but there are some caveats: - If you're interested in working at a certain MF that's mostly modeling driven (Apollo, Blackstone), it's extremely hard (read: almost impossible) to break in from MBB. I personally know a few people who landed a job at KKR, Warburg, etc. from MBB but there are very few. - If you're interested in a job at a more operationally-focused but prestigious fund (H&F, Berkshire Partners, Bain Cap), your odds are very similar from MBB as they are from a top IB (GS, PJT, etc.). People can break into these funds from a less prestigious investment bank, but it's quite difficult. Look up the associate class on the Berkshire Partners, New Mountain, H&F, Sycamore website, etc. - it's almost exclusively MBB or bankers from top firms / groups. - If you're interested in working for a less prestigious PE firm that is only hires bankers (there are dozens and dozens of these) , then obviously you can't access these funds from MBB.

Anecdotally, I would estimate that ~75% of the people I know from MBB that recruit for PE ended up getting a job at a well respected PE firm (all MM/UMM/MF). However, there is a huge selection bias as the people who do recruit for PE from MBB usually have a good understanding of finance , have done a rotation in the PE group, etc.

Also, I agree with some posts above in how you classified investment banks. There's no hard rule with rankings. The best thing to do is go on each firm's website or LinkedIn and see which firms and groups they hire from.

All in all, if your goal is to be in PE regardless of the size of the firm (i.e. you'd be fine going to a shop with a $1B fund), then go into investment banking. If you only want to go to a Apollo type shop, go into IB. If you want to maximize your odds at one of the ~15 prestigious shops that are more operationally focused and hire consultants, then I would choose MBB over a second-tier investment bank.

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