MBB to PE - How to navigate prep, timeline, HHs?
I've seen several posts that cover moving from MBB to PE, but many are very general or outdated. Hoping to get some insight/advice from people who have gone through the process (preferably somewhat recently). I am an incoming BA/AC/A campus hire starting work this summer. I just got my first HH email and am unsure how to proceed. I would love some input on the following:
1. I have read that it is common for MBB hires to do 3 years before moving to PE. The rationale behind this has been that MBB Y3 can be fun and low-stress (secondments, externships, etc.) and that an additional year of experience (with DDs and strategy) can make you materially better at the PE associate role.
- How true is this and, if 3 years is indeed optimal, should I just reply to the HH and say I want to be part of the 2026 process?
- Any other considerations here?
2. Though I am interested in PE, I really do think there is a chance that I will love consulting. As such, I like the prospect of having a year to "test the waters" before jumping into buy-side recruiting. Additionally, I feel that the MBB lifestyle may be more sustainable in the long term.
- Is it common/possible to return to MBB after a PE stint? I have seen a WSO that discusses the process, but that's n=1
- Along the same lines, is it possible that I could do MBB -> PE -> MBA with MBB sponsorship -> MBB?
- In the case of corporate exits, I have read that ex-consultants are sometimes siloed off into S&O-type roles that lack P&L ownership and that a PE stint can ameliorate this, broadening exits. Any truth to this?
3. As far as prep goes, I have not looked at PE materials past skimming an intro guide a banker friend sent me. My primary concern is with being a top-performing MBB analyst. However, I do have some free time to play with before work starts.
- What is a reasonable prep timeline to learn PE technicals and modeling? How many hours per day/week on average?
- I have been told that working on PEG/PEPI engagements is essential to both obtain and succeed in buy-side roles. Would it not be better for me to wait a year so that HHs and firms can verify that I have actually done this (in addition to me being able to talk about them in interviews)?
- I have read that many firms won't look at consultants at all, while others are "consultant-friendly." Does this change anything from a prep standpoint (i.e. don't kill myself trying to learn advanced modeling when that won't be expected of an MBB hire)?
4. The economy could be in better shape. PE is more insulated than banking but is far from immune. Some firms have struggled with fundraising.
- Will obtaining a buy-side seat this year be more challenging than in 2024 (assuming the market picks back up)?
Apologies for the length--I am new to all of this and was caught a bit off guard by the HH email. Thank you in advance for the help!
Absolutely do 3 years in consulting and absolutely do not participate in this on cycle. Bakers literally have to do it because banking blows and it’s their only way out. Consulting is much more enjoyable and you don’t even know if you’re interested in PE yet. Do a few cases in PEG/PIPE/PEPI, talk to people that have made the jump, and if that’s truly what you enjoy then recruit. Don’t buy into the heard mentality
Thank you for this reply--it knocked some sense back into me. Was easy to miss the forest for the trees when my banker friends are all sweating out the insane, mysterious PE process. Should I just reply to this HH and say that I'd like to get in touch next year about 2026 openings?
1. Former consultant here, absolutely do 3 years. Just tell the HH you want to do on cycle next year and want to focus on consulting for now as you understand it is not uncommon for consultants to do 3 years.
2. If you do well at your MBB it will be easy to go back at any point in time. End of story, no follow up questions, see previous sentence. To your point about exits, consulting teaches you S&O. PE teaches you finance. There is a Venn Diagram of jobs that require one or both skills. By doing PE after, you gain access to the ones that require finance or both.
3. Timeline depends on you. Go to multipleexpansion.com and get through the training and full LBO, then get some old modeling tests from your banking buddies or asking around WSO. Your prep doesn't dependent on consultant friendly, you should just be able to do the 3 statement 3 hour model test. You may pick it up in a couple of weeks, you may take a few months. Depends how smart you are and how much you work at it.
4. Don't worry about this. Out of your control. Take a deep breath. End of story, no follow up questions, see previous sentence.
Normally I would respond to future questions but in your case I think the point would be you don't need to ask any follow up questions. Go try out consulting, get a couple of buy-side DD cases under your belt, work on modeling until you can pass a 3h test, and then see if you still want to do PE or not. Tell HHs your plan if they ask, continue to do research on this forum, and enjoy life my man, working at MBB is a fun ride, focus on making friends with your start class, and don't talk about PE exits - it is not cool to talk about and nobody cares. You'll find your tribe of people who care about that as time goes on.
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