MBB to PE
For those of you who transitioned from MBB to PE 1) how long did you prep for?(esp. for technicals) and 2) Would transition at 4th year of consulting be too late? (for UK market)
For those transitioning from MBB to PE, here’s what you need to know based on the most helpful WSO content:
Preparation Time for Technicals:
Transition Timing (4th Year of Consulting):
To maximize your chances, focus on networking with PE professionals, refining your technical skills, and clearly articulating how your consulting experience translates to value in a PE context.
Sources: Q&A: Big4 Consulting to Private Equity, now M7 MBA, How to transition from Technology Consulting at a Tier 2 into MM Private Equity?, Q&A: MBB to MM PE, Transition from Big 4 Consulting to PE - Advice needed, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer
Bain SAC (almost Consultant) that will soon move to a MM PE fund (Investment Manager, but it is more like a Senior Associate position) in Italy here – I’ll share my perspective, but please take into account that it is totally based on the Italian market.
1) I prepared for 1–2 hours a day, every day, for 1.5 years. I got offers from multiple reputable MM shops in Italy and eventually accepted the one at the fund where I had wanted to work since university. Fairly standardized recruiting processes (accounting, finance, strategy, FDD, and LBO modelling) from what I’ve seen, except for the fund where I accepted the offer (consulting-style interview process with no LBO modelling). WSO courses + Transacted + Interview xChange + Priced-In book + 400 questions from BIWS and you should be totally covered. For the Italian market, I experienced that a lot of attention is paid to FDD adjustments (easily covered if you have internal FDD checklists from Big 4 FDD teams). I don’t know about the UK market.
2) I graduated in Accounting and Finance at Bocconi in 2021, did 2 M&A internships at small boutiques, 1 year at EYP in FDD / Strategy Consulting within the PE practice, and then almost 3 years at Bain (restarting from the internship, because in Italy they totally discount your external experience if you come from a lower-tier consulting firm), working on both PE and Financial Services engagements. So definitely 4th year is not too late - it is the norm for Italy
PS: Probably it has already been mentioned, but the MBB → PE transition is way harder than it seems — I have plenty of peers trying without success
thanks a lot... this is what I needed to hear. After hearing your process, the transition really does seem hard. :( :( :( Congrats on your transition despite the hurdle!!!!!
I'm at MBB in continental Europe and in processes since quiet some time. I get loads of looks and processes with almost all heavy hitters (that is, those that hire consultants). So think of EQT, KKR, Catterton, Permira ... + bunch of random Smallcap. Surprisingly almost no traction with MM funds (which would be my ideal target) - they have not so many seats and tend to fill a lot with prior interns. Also feel like MM is often times banker heavy.
W regards to the processes:
I feel like it is very, very painful. Also discussed about the state of the current market w some of the best headhunters and their take is that funds are in general hiring/open to run processes but are highly selective when indeed closing in. So following situation:
In general I still have the feeling that you will get a spot if you keep pushing through it and especially also if you are more flexibles w regards to location.
However, processes are time consuming and very discouraging. When in University interviewing for MBB and other top-name firms it was always this "game-day" feeling and you knew if you do well you get the offer. In PE every process feels so random, with a neurotic amount of tests, interviews, etc. involved requiring so much time and effort just for you to realize at the end that the former intern now dediced to convert and hence they don't give out any offer to the external process.
MBB consultant; prepped 1 week for interviews, got MF offer, showed up not knowing how to spell ebitda, and got top bucket first year. dont worry about it
Lol could you elaborate? Was this one of the MFs which have separate processes for consultants vs bankers?
What kind of bucket shop process are they running over there
Getting into PE from MBB is extremely difficult. There is a lot of valuable financial skills that you need to learn first in Banking to successfully transition. Take it on yourself to learn to model, and do not listen to Consultants when they say it is easy to get into PE from MBB. I am ex-MBB, and I have noticed that most consultants suffer from the Dunning-Kruger effect. They do not know, what they do not know.
If you want to join PE for the long haul, learn to model, learn to enjoy investing, also leverage your time at MBB and get good at what MBB does best - business analysis, data analysis, unit economics, etc. Those are very valuable skills that will earn you your keep when competing against your ex-Banker peers for the coveted Senior Associate / VP role on the buy-side.
You write this on every thread (that you come from MBB and that MBB people in PE are so bad) and I hardly disagree. Compared to banks - and it really depends on the bank ofc - a good (and I say good, MBB is way too diverse to just hire somebody randomly from e.g., a public sector practice) is way more well rounded/shaped professional than a banker.
If you hire someone from MBB with 2.5-3.5Y tenure it is night and day difference compaed to a IB analyst in terms of stand-alone work, communication, business knowledge, senior leadership engagement, and so on. Also the type of person is just way more polished. Like you could bring them to a mgmt dinner with top c-level and they would know how to behave. There are certain banks which also produce such individuals (top BBs), but across the spectrum you also have tons of socially-unadjusted ppl coming out of banks with a fratty-touch and very stereotypical behavior (locker room comms, cookie-cutter personas very money driven, etc.)
When you hire a banker, and that is why most funds do it, you absolutely know what you get on the junior level. You know you can let them sit for 2-3 AM for weeks on end, drill out models, repeatable analysis with somewhat easier to follow instructions. That I agree. It is just the low risk play to get on because you know it will work. Hiring a MBB consultant is more of a long shot. I feel the potential of a ton of people from there is theoretically much higher but in general they are much less cut-out for all the shenangigans, BS, toxcity, ultra long hours, etc. that the bankers are used to.
That are my 2 cents.
Respect your POV, but would flag that I restate this statement so that some mis-informed young career person does not make the wrong career decision wanting to work in PE and erroneously think that MBB is something that it is not. When I went through the process I was oversold on the PE exit op bit. Also, with the legions of clueless MBBers who stand at the ready to tell you how easy it is to break into PE from MBB, I think my view is important to spread again. It is critical to understand exactly what you are getting and what you are not getting when you go into MBB.
In short Banking is excellent for Buyside you get rigorous training in finance. Consulting is great for any strategy business role. You can have overlap, but if you never did Banking and try to move into PE from consulting, I am sorry - you will probably get fired from your first fund. The ramp is just too steep - as an MBB person you will take 10x longer and will not understand basic finance concepts - unless you prep for it intentionally. You can make the jump from MBB but you have to be much more intentional about it because what Bankers are doing on the job you have to do on the weekends on top of your MBB day job - that is HARD!!!
I’d say you need to be really smart about it meaning know where to draw the line, but the “locker room comments” lead to significantly better rapport with mgmt than some overly polished suit
The biggest difference is that you need to significantly ramp up on your accounting knowledge coming from MBB.
And I am not talking about the break into IB type of questions on how D&A flows through the 3 statements lol.
More in the sense that you need to proactively correct for leases and capitalised expenses to value a company on its real cash EBITDA during a 3h business case study. Applied accounting to finance case studies.
Also you should train at least 10+ LBO models so that it becomes automatic, but this is not that hard and is just about doing enough reps.
I think that’s not very difficult and also not necessary. Funds know what they get in the door with a consultant vs a banker. They either want that or they don’t
Laboriosam aut quo asperiores earum est aut. Ut ut sed aut et occaecati. Fugit quis cupiditate molestiae est distinctio occaecati.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...