Former consultants in PE: was the move genuinely worth it?
There are plenty of discussions about how to move from MBB into PE, but fewer about whether people were happier after making the move.
For former consultants now in investing:
* Did the work become more intellectually interesting?
* How did the hours, culture and autonomy compare?
* Did you enjoy evaluating investments more than advising clients?
* Would you make the move again, or pursue another exit such as corporate strategy, startups etc?
Particularly interested in European experiences, since most existing discussions appear US-focused.
Yes
Hours were longer and culture more intense
Yes
Yes
What aspects about consulting do you miss the most? Also curious whether you were at MBB or tier 2 etc
* Did the work become more intellectually interesting?
Yes
* How did the hours, culture and autonomy compare?
Worse, worse, first worse then better (back on lowest rung but after that you’re a decision maker vs advisor)
* Did you enjoy evaluating investments more than advising clients?
Yes. You’re actually making it happen vs advising a very small slice of the picture
* Would you make the move again, or pursue another exit such as corporate strategy, startups etc?
Yes but now I want to quit
Why do you want to quit? Can I also have some background on what sort of consulting firm you came from and what sort of fund you are at now?
Too political and too many hours, have lost my drive as I get older. Was MBB, now UMM
10000% worth it. Coming from straight out of undergrad, it feels like my comp floor is now in the 200s and would’ve been in the mid 100s after Mbb (though fair push is if I stayed in MBB another 2 years and prob would be similar).
Definitely more intense . I always found MBB to be heavily political, and while that is definitely true in PE , it feels like being an investor at the end of the day has a higher percent where it comes your skillset and your modeling abilities etc. Though tbf , part of why PE feels less political is it is a bit more of a known 2 year program and I’ve kind of like accepted that at my shop … moving up is extremely difficult. Transition was also really difficult but definitely worth it.
The more macro question is most ppl leave PE after 2 years so there’s the question if it was worth it in the long run or if everything just converges
What are you planning to do after your 2 stint in PE? Currently at MBB considering the move but a bit apprehensive with all the negative talk on this forum.
Good question. I do love it and so I want to lateral. Lateraling is very hard.
PE in general is very hard. I am doing a lot of soul searching for if I like PE for the “right” reason enough — i find it stimulating, i like to be pushed, etc, but I also like money and prestige etc , and am definitely motivated by both.
But the thing is fighting to stay in the industry really pushes you to evaluate if you like it enough— do you have the motivation do be doing case studies on a Friday instead of going out? Are you willing to pull another all nighter? Can you take a senior pointing out your mistakes and feeling “dumb” and take the lessons and really get better (this is especially big coming from MBB— unless you’re at a firm that ONLY hires consultants , other associates and mid levels are going to think you’re dumb for the first bit at least . You are going to need to have the grit and thick skin to push through this and be relentless to get better)
Again I don’t mean to scare you. I think it’s absolutely worth doing . Realistically my comp floor is actually prob a bit higher than MBB alone, and now I am prob more suited for corp dev and corp finance roles, which I think is more interesting than the garden variety “chief of staff” or “strategy” my peers from MBB have gone to which is often just customer success
I think most of these threads are in general useless, because they will lead to sampling bias.
The problem I see is the following:
Overall the question is really comparing apples ==// oranges. I kinda can relate to you, because I was in a similar mindset during my time at MBB. Kind of lost what it is that I want and always bound by the constraints of my ego and prestige, so every decision was evaluated around the frame of how it is perceived by other people and how much money I would make in the immediate term.
Overall this is a pretty irrational and useless decision frame. Look, if you are really comparing going into a startup, working in a corporate stratey department or going into PE this is somewhat similar to asking yourself "should I rather play American Football, go Skiing or become a Surfer" - it is so much different that you inherently first need to make a choice what it is that you want to do AND what suits your skillset before weighing the pros and cons of each.
Definitely worth it for me. More interesting work, very steep but gratifying learning curve, and oddly better WLB on average, although that’s probably more due to some pretty heinous staffing luck while at MBB.
I managed to snag a Sr Associate bump at my firm but even if I didn’t, would absolutely do it again for the experience. If anything would maybe have tried for a slightly bigger fund (currently at LMM). But likely would not have made SA and honestly, until you’ve been in the seat it seems like there’s little way to truly know what a funds like until you show up day one. So could have been a much worse experience. Just my 2c
10 years into PE and thoroughly agree with the above. Way better upside and far more interesting work (that’s actually much more strategic than MBB ever was).
Feel free to DM and I’d happily hop on the phone to discuss trade-offs.
So to caveat this, I was actually a T2 management consultant. However I was in PE/CDD team that is very similar to the type of work seen at an MBB so I think I have a solid perspective here. My background is 3 years management consulting. 1.5 years F500 Corp dev. 1 year PE PortCo Strategy, development, and operations. Part time MBA student on the side. Started in PE this January so about 9 months in. I signed an offer with a different firm to join as a Senior Associate next year summer
* Did the work become more intellectually interesting?
100%. Back in management consulting, I was bored after a point. CDD’s have a very specific approach that is very repetitive after a point. Same goes for many corporate strategy projects to be honest. I hated dealing with surveys. I love the significantly higher amount of thinking I do in my current PE role. In addition, I actually did work in corporate development and corporate strategy/operations before. You have very little control over the deals you pursue as they are tied to a roadmap. As you move up in corporate strategy/operations, the job starts feeling like babysitting at times of major initiatives. Also, you often exist to validate the ideas of specific executives. I appreciate the higher degree of control I generally feel in PE. Even ignoring carry, PE comp is simply just so much higher. My cash comp will be 350K as a Senior Associate. That’s on par with senior directors at my F500 Corp dev job, and I’m a Senior Associate
* How did the hours, culture and autonomy compare?
My hours are pretty similar to consulting with the caveat that they can get really intense in the 2-3 weeks before signingsI love the culture in PE more. There is more intellectual conversations. I would also argue I have wayyy more autonomy now than I had in consulting. It is very different though. All PE firms are small businesses. You really need to fit the culture of your specific PE firm, and there is more variation than you would expect
* Did you enjoy evaluating investments more than advising clients?
100%. We have more influence and a say in what we do. I love brainstorming investment ideas
* Would you make the move again, or pursue another exit such as corporate strategy, startups etc?
I will never leave from PE. This is the most satisfying job I’ve ever had, even considering the hours. I hope to launch my own PE firm one day with a close friend of mine who is also in finance
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