Is IB —> Consulting exit overlooked?
I know this sounds wrong to some people, but I feel like for many bankers, exiting to mid MM buyside seats requires similar hours, more interactions with narcissists, and stalled comp until you become more senior with carry. Not to say consulting doesn’t have its fair share of irritating aspects, but on paper, obtaining a skill set in the operational side supplementing the banker skillset may be the superior background for career marketability. Yes, the biggest con with this path would be that you would probably lose a year with the transition, which may be a positive when you outperform the native consulting biz analysts/associates who don’t have excel loaded on their Microsoft surfaces. Anyways, would love to hear any thoughts good and bad.
Based on the most helpful WSO content, transitioning from Investment Banking (IB) to Consulting is not as commonly discussed as the traditional IB-to-buyside path, but it can be a strategic and marketable move depending on your career goals. Here are some key insights:
Skillset Diversification:
Exit Opportunities:
Lifestyle and Culture:
Challenges of Transitioning:
Marketability:
While the IB-to-consulting path may not be as common, it can be a smart move for those seeking broader career flexibility, a more diverse skill set, or a shift in lifestyle. The trade-offs, such as a potential temporary step back, should be weighed against the long-term benefits of a more versatile career trajectory.
Sources: Q&A: Former MBB Consultant, Q&A: Consulting v. Banking, the age old question. By Former MBB and Bulge Bracket Banker., Breakdown of Post-IB Exit Opportunities, Breakdown of Post-IB Exit Opportunities, Checking in 6 years later [IB to MBB transition]
Consultant at an MBB here (about to move to a PE fund).
Surely, a profile with 2 years in IB and 2 years in consulting has the doors to exits (PE, Strategy, Chief of Staff in startups, returning to banking/consulting) much more open than someone with 4 years in either one alone, so I think your reasoning is correct. At the same time, I don’t think you would lose seniority by moving from banking to consulting, because at the same level of seniority, if you moved from a top IB to an MBB you would still face a not insignificant pay cut.
Be careful in assuming that consulting Excel modeling is simple. I learned quite easily how to build fairly complex LBO models on my own for my PE recruiting processes, and I find that some analyses and models I worked on during my three years in consulting were significantly more complex (not to mention the variety compared to those built in banking, since in consulting you practically have to invent something new in every project).
Awesome response — Thanks!
It could be an excellent strategy. There are also a lot of corp dev + strategy teams that would value this combo of experience
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