Moving from MBB to IB? Does it make sense?
I am now over a year at an MBB (McKinsey). I like the work to some extent (if I do get the right engagements, that is finance/modeling related or PE DD work).
Lately I thought about switching to IBD. I was a finance major in undergraduate and also have a finance graduate degree from one of the well known continental European schools (HEC, Bocconi ...).
I am now wondering whether this might be a sensible move or whether I am just romanticizing banking. In general, most peers I asked about this inquiry told me to gun for PE directly.
However, I personally think I would vastly benefit from 1-2 years of M&A experience before eventually moving to a buyside job.
Am I thinking realistically here? Are there any possibilities to switch to banking without doing the educational leave / MBA thing I soon would have to do anyway.
Happy for any guidance
I think there's two questions here:
1) Is it sensible? This is kind of hard to answer, as you haven't really unpicked why you're attracted to banking or what you're romanticizing. No, it's not Wolf of Wall Street or Barbarians at the Gate every day, but I think you know that already.
2) Is it possible? Honestly, it's going to be very tough to make a lateral move, particularly in this market. I'm sure precedents exist, but I've not come across any - the issue is really that you'll be a less obvious candidate with less obvious transferable skills than, well, another banker. And there are a lot. If money is no object and you can get into a good school, honestly an MBA could be the best option (and a lot of fun). If the cost is a concern, a route might be through a smaller / boutique bank, or joining the Big 4 and getting an accounting qualification and transferring that way. That said, the opportunity cost of just staying in McKinsey would be big in $$$ terms - depends how bad you want IB for its own sake.
I do think a lot of PEs take MBB candidates though, if your goal is PE, so I'd agree with your peers. Either their PortCo teams or occasionally investment teams
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