Info Request - PE Groups at MBB vs. Rx PE Performance and Quant Groups

PE Performance Improvement teams at major restructuring-type firms focus on improving EBITDA, working capital efficiency, merger integration, and forecasting for companies held by PE firms. They also engage in other aspects of finance including lease vs buy analyses, refinancing/recapitalization analyses, market segmentation / product & customer rationalization, product pricing, and other strategic issues that CFOs deal with. You'd be surprised how many PE firms outsource this type of work as opposed to doing it in-house. The cost of a consultant ends up being a write-off / one-time restructuring cost that PE firms absorb in an effort to sell the PortCo at a higher EBITDA or higher multiple, so it's an attractive option for some firms to pursue. Career-wise, it's certainly a good place to land if you're interested in the interim CFO route and can give you the experience of running a business from the top down. I know Cerberus has an Operations & Advisory practice that is their in-house version of the PE Performance Improvement group, so if you're interested in exiting to that area of PE, this is a good route for that as well. The work is a cross between finance and operational work, though it can also be segmented where pure operational work will be handled by guys with engineering degrees.

This contrasts to pure RX groups which focus on crisis situations, where liquidity is dire and the firm has limited options. Often RX groups play in bankruptcy or on the edge of bankruptcy, and the playbook tends to be similar (but not the same) from case to case. The engagements are generally short, intense spurts lasting a few months; however, I've been on a few that have been longer marathons as well. It depends on how shitty the situation is and what the goal is at the end of the day. If it's a longer wind-down, that can be a drag. If it's a short sale, expect a very quick turn around with long nights. That's over-generalizing it, just to give you a picture. 

I've been in RX for roughly the last 10 years and my work is industry focused so we do a little PI as well. PM me for more details if you need.