Lateral to IB from Consulting?
Hi all,
I’m starting at a T2/boutique management consulting firm soon and wanted to get some perspective on the chances of lateralling into investment banking — specifically into coverage, LevFin, or equity research — within 1 to 2 years.
Quick background:
- Recent graduate from a target (Ivy)
- 3.9 GPA in a STEM major with a second degree in economics
- Only learned about IB after junior year (a little late to the game), so didn’t go through SA recruiting
- Genuinely interested in investing long term (public or private side) and trying to course-correct
- Have some finance-related coursework and valuation project experience. One internship at startup, one in LMM PE, one in corporate banking.
- Starting full-time in NYC and planning to network aggressively from day one
I know the traditional route is SA to FT offer and I have a pretty non-traditional background, but wondering how realistic it is to pivot from consulting (non-MBB) into a lateral IB seat or if research/LevFin might be more feasible. I’d also love to hear about:
- What types of consulting work are most transferable to IB?
- Whether firms are still filling lateral analyst/associate roles 1–2 years out
- If a transition to the buy side (e.g., AM/PE) is possible straight from consulting vs. after IB
- Any advice from people who made a similar pivot
Appreciate any insight or shared experiences. Thanks in advance!
Lateralling from a T2/boutique management consulting firm to investment banking (IB) within 1-2 years is feasible but challenging, especially compared to MBB, though your Ivy League background (3.9 GPA in STEM and economics), finance-related coursework, valuation projects, and internships in LMM PE and corporate banking make it realistic with aggressive networking in NYC; focus on finance-related consulting projects like due diligence, M&A, or valuation to align with coverage, LevFin, or equity research roles, as banks fill lateral analyst/associate positions on an as-needed basis, often at boutiques more open to non-traditional candidates; transitioning to buy-side roles like asset management or private equity is possible directly from consulting, but IB experience often provides a stronger foundation, so leverage your firm’s alumni network, highlight finance skills, build technical knowledge (e.g., LBO models), and start networking immediately to maximize your chances, as others with similar pivots emphasize early connections and relevant experience.
Why do you want to do IB?
The statement “coverage, lev fin, or equity research” gives me pause.
Those are three completely different careers. Do you want to work on M&A deals, debt raises, or analytical reports on companies?
I don’t need an “interview answer” - if what you really mean is “I want to break into front-office finance at an investment bank,” that’s helpful, though I’d still caution you to think through what it is exactly you want to do. Like consulting, it’s not just “one thing” or “one task.”
Equity research would probably be the easiest of those to break into, but it’s not what you want if your end goal is PE, or even a top corporate exit. If you work with a certain industry, learn how to build three statement models and DCFs, can write comprehensibly, and network with current ER associates, you’ll probably get bites.
Personally, though, I’d rather work in T2 consulting than equity research. ER is a grind … the hours are tough, the stress levels are high, deadlines are more imminent than even in IB, and the pay is lackluster with poor long-term industry prospects and slow promotion. The best reason to do ER is as an attainable stepping stone into coverage or a hedge fund/long only investing role.
As for coverage, the playbook is the same (learn to model … and also learn how to build an LBO and M&A accretion dilution analysis on top of the three statement and DCF), network with current associates (which is easier if you pick a niche, like a sector, and focus your networking there), and tap into your undergrad resources if you went to a target.
I don’t know as much about lev fin, but I suspect a similar process as breaking into IB albeit with different modeling/technicals.
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