Does Blackstone PE hire laterals from McKinsey?
Hey guys, does Blackstone PE favour hiring from ex-investment bankers or do they also take from McKinsey?
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Based on the most helpful WSO content, Blackstone Private Equity (PE) and other mega-funds generally favor candidates with investment banking backgrounds due to the breadth of opportunities and the traditional recruiting pipeline. However, McKinsey consultants, especially those with strong performance and relevant deal experience (e.g., commercial due diligence), can also make the transition to PE, including firms like Blackstone.
Key points to consider: 1. Preference for IB Backgrounds: Many PE firms, including Blackstone, often prioritize candidates from investment banking due to their financial modeling expertise and transaction experience. Some firms even instruct headhunters to focus exclusively on candidates from specific banks and groups.
Consulting to PE Path: While less common, McKinsey consultants can break into PE, particularly if they excel in areas like due diligence or have a strong network. Bain, for example, has a slight edge in PE recruiting due to its Private Equity Group (PEG) rotation, but McKinsey consultants with top performance and networking can still secure opportunities.
Networking and Alumni: McKinsey's global network and reputation can be advantageous. Impressing McKinsey alumni at PE firms or leveraging connections can help secure interviews.
Differentiation: Consultants transitioning to PE often need to demonstrate strong financial acumen, deal experience, and a clear understanding of the PE industry to stand out against IB candidates.
In summary, while Blackstone PE may lean towards ex-investment bankers, high-performing McKinsey consultants with relevant experience and strong networking can also be considered.
Sources: McKinsey vs. Bain for Private Equity MF Exit, Is BCG a viable path to Private Equity?, Q&A: Former Strategy& associate, Lateral hire from another consulting firm to MBB, Moving from McKinsey/Bain analyst to PE associate
Not really
Well
1) Moving from consulting to PE is not a lateral move, it's completely changing industry.
2) Not frequently. There's a few folks who came from McKinsey to BX PE (excluding consulting internships) but a quick glance shows most of the folks either did PE/MBA in between. You can count the number of direct moves on 1 hand. 100% BB banking will give you better odds.
Rare but possible. If BX is the end goal, moving to an MM fund (very possible from MBB) and then pivoting to BX might be the easier (but longer) route.
Other mega funds not other middle market PE spots**** ie yes you can go from MBB->bain cap -> Blackstone, but at the at point the Bain cap to Blackstone move is more of a lateral and not clearly the move here . This is not about Bain cap itself but when you do these types of moves you tend to give up carry and being “settled” at a firm for very marginal upside
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