RX prep / lateral through Big4 or LevFin Group

I’m trying to figure out which path would better prepare me and open up more opportunities early in my career. Joining a restructuring team at a Big4 or going into a leveraged finance team at a bank.

Rx at a Big4 firm seems more directly relevant, but I’m unsure how much hands-on financial modeling and detailed document analysis junior team members actually get.

Leveraged finance feels less directly aligned with restructuring, but being in the banking environment could be advantageous. It might also create opportunities to move internally into a restructuring team later on. Modeling depends on the group but those teams work on docs?

I’ve seen people transition successfully from both paths, so I’m curious which option tends to provide a stronger foundation and better long-term optionality. Have Analyst offers for both, not focused on maximising comp but want to prepare for RX Banking.

12 Comments
 

You won’t do any of the high-level waterfall/distressed valuation modeling you do in RX IB at PWC. It’s also much more difficult to lateral into IB from RXCO as opposed to being at even a lower tier LevFin group. Much easier to get into RXCO from IB. Workflows are way out of line from RXCO to RXIB. You also mentioned “better for exits” from a broader early-career perspective, and that 100% goes to LevFin IB.

 

Not really, Big 4 RX is VERY different from RX at a dedicated RX shop like FTI, Alix, A&M. The latter is valued by buy side shops and even RX IB. The former is not 

 
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I would second this, the Big 4 Rx teams are fundamentally different from dedicated Rx firms. I believe some of it has to do with conflicts that arise at the Big 4, so they handle more municipal restructurings and semi-related work streams. I also think the work is more accounting driven engagements from what I understand. If you were going to Big 3 RxCo (A&M, FTI, Alix) then I think that is a very different situation that warrants comparison to LevFin.

All that being said, I think if your end goal is Rx IB asap, and the LevFin role is at a reputable bank, that is clearly your best bet compared to Big 4 RxCo. 

 

Would still say exits are much more defined and established. Still opportunity to get into MF PC. I just haven’t seen any exits from RXCO. Maybe it’s due to vast majority of teams being senior hires not looking for a career change, but I also know there are way more people in RXIB/PE/HF/MF PC from GS/MS/JPM/Barclays LevFin than RXCO.

 

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