Is IB —> Consulting exit overlooked?

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:

1. Skillset Diversification:

   • Consulting offers a broader skill set, particularly in operational strategy, project management, and client interaction. This can complement the technical and financial expertise gained in IB, making you a more well-rounded professional.
   • Consulting also emphasizes soft skills like messaging, reading the room, and managing diverse teams, which are less emphasized in banking.

2. Exit Opportunities:

   • While IB is traditionally seen as the gateway to Private Equity (PE) and Hedge Funds (HF), consulting opens doors to a wider array of roles, including corporate strategy, operations, and even PE at consulting-friendly shops.
   • Consulting can also be a strong feeder into MBA programs, which can further expand career options.

3. Lifestyle and Culture:

   • Consulting may offer a slightly better work-life balance compared to IB or buyside roles, though this varies by firm and project.
   • The culture in consulting is often described as more collaborative and less hierarchical, with earlier exposure to client-facing roles.

4. Challenges of Transitioning:

   • The transition from IB to consulting might involve a temporary step back in seniority or compensation, as you adapt to a new industry and skill set.
   • However, your IB background can give you an edge over native consulting analysts/associates, particularly in areas like financial modeling and Excel proficiency.

5. Marketability:

   • Combining IB and consulting experience can make you highly marketable for leadership roles in corporate strategy, M&A, or even entrepreneurship. It signals both technical expertise and strategic thinking.

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]