Long term benefits of a career in PE coming from consulting
I spent 2 years at MBB (recently left) and I’m targeting to move to an UMM/MF PE firm next year. However, if I decide investing is not for me, will 2 years of PE be beneficial at all for me in my longer term career? I don’t feel like I learned as much in consulting due to the covid experience, so I’m also open to returning to MBB.
Long term goal is to go to H/S MBA and run a F500 company and I don’t think PE is my long term career, but I think the finance that investment bankers and investors learn is important knowledge to have as an executive. However, I know PE name brand probably won’t help as much as MBB since corporate people usually aren’t familiar with any of the PE firms that hire consultants.
If you want to leave finance just stay in consulting IMO.
You do not believe there is much to gain from learning the PE skills?
Did consulting then PE. Won’t stay in PE. But learned an insane amount. I recommend, despite the PE experience being excruciatingly unpleasant and way worse on average than my single worst week in consulting.
Can you please explain more about types of consulting/PE firms you were at and what you learned in PE that you didn’t in consulting? If you’d prefer, I am also happy to talk by DM!
Consulting taught me strategy, markets, how to actually implement ideas with an organization and manage politics, etc.
PE taught me financial modeling, capital allocation, and figuring out the levers are that enhance firm value, as well as how to "act" in a board room
If you think of the question: who would drive more value at a F500 as CEO, a PE Partner or a McKinsey partner, I think the answer tells you what you learn at each place
I personally think the McKinsey partner would drive more value because they know how to implement things, maneuver an organization, etc., but I also personally think the PE partner would be better at it on paper because his job is to identify value, but does not themselves know how to implement value accretive changes (e.g., relies on communicating value drivers to management who enacts them)
Stream of consciousness rant, can expand if helpful
What was so bad about PE compared to consulting? I heard the hours are worse, but not significantly worse than MBB.
(I'm a new MBB hire considering recruiting for PE)
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