Opinions on starting London IB or MC for my goals

Based on the most helpful WSO content, here's how you can weigh the pros and cons of starting in London IB or MC for your sustainability and impact investing goals:

1. Skill Development:

   • Investment Banking (IB): IB will provide you with deep expertise in financial modeling, deal structuring, and valuation. These are critical skills for analyzing complex deals, which align with your goal of starting or working in a PE firm focused on sustainability and impact investing. However, the specialization in a specific industry or product class might limit your exposure to diverse sectors.
   • Management Consulting (MC): MC offers a broader skillset, including problem-solving, operational analysis, and strategic thinking. You'll gain exposure to various industries and learn to approach challenges holistically, which can be valuable for balancing people, profit, and the planet.

2. Networking Opportunities:

   • IB: You'll interact with senior executives and decision-makers in finance and corporate sectors, building a strong network within the financial industry. This can be advantageous for raising capital or sourcing deals for your future PE firm.
   • MC: Consulting provides access to a wider variety of clients across industries, which can help you build a diverse network. This could be particularly useful if you aim to work in emerging markets or across multiple sectors.

3. Exit Opportunities:

   • IB: IB is a traditional feeder into PE, especially for roles requiring strong financial acumen. If you're set on PE, IB might offer a more direct path.
   • MC: While MC also offers exits into PE, it provides more diverse opportunities, including corporate strategy, startups, and impact-focused roles. This could be beneficial if your goals evolve over time.

4. Work-Life Balance:

   • IB: The hours are notoriously long, which can lead to burnout. However, the compensation is significantly higher, which might help you build capital for your future ventures.
   • MC: Consulting generally offers a better work-life balance, especially at the analyst level. This could allow you to focus on personal development and networking outside of work.

5. Sustainability and Impact Focus:

   • If sustainability and impact investing are your primary goals, consider which path aligns better with firms or projects in this space. Some consulting firms have dedicated practices for sustainability, while certain IB groups focus on ESG and impact investing.

Recommendation:

• If you're 100% set on PE, especially in sustainability and impact investing, IB might be the better starting point due to its direct path and focus on financial expertise.
• If you're slightly unsure or want to explore diverse industries and skillsets before committing to PE, MC at a top firm (e.g., MBB) could be a better fit.

Ultimately, your decision should align with your long-term goals and personal preferences for work-life balance, skill development, and networking.

Sources: Why did you choose MC over IB?, Why Consulting - Answering the Interview Question, Why do MBAs seem to favor consulting over banking nowadays?, https://www.wallstreetoasis.com/forum/investment-banking/ib-vs-consulting?customgpt=1, https://www.wallstreetoasis.com/forum/investment-banking/pros-and-cons-ib-vs-pm?customgpt=1