Switch from Investment Consulting to PE / Management Consulting

Based on the most helpful WSO content, here’s a breakdown of your options and considerations:

1. Move to Management Consulting:

   • Pros: This can be an intellectually stimulating role with broader exit opportunities. Consulting firms, especially MBB (McKinsey, BCG, Bain), often value diverse backgrounds, and your experience in investment consulting could be a unique asset. Additionally, management consulting can serve as a stepping stone to PE, as many PE firms value the operational and strategic expertise consultants bring.
   • Cons: As you mentioned, you might face a career cut, especially if you’re entering at a junior level. However, with your MSc Finance from a target school, you could aim for a post-MBA role or leverage your network to minimize the cut.

2. Move to a Family Office in Private Investments:

   • Pros: This aligns closely with your interest in understanding transactions and business models. Family offices often provide a more hands-on investment experience compared to FoF or secondaries.
   • Cons: As you noted, this can be challenging in Germany for non-native speakers. Networking and showcasing your expertise in private investments could help overcome this barrier.

3. Move to a Small PE Firm in Germany:

   • Pros: This would give you direct exposure to transactions and business models, aligning perfectly with your goals.
   • Cons: Without transaction experience, this is indeed a tough transition. One viable route, as you mentioned, is to first move into management consulting and then pivot to PE. Another option could be targeting PE firms with a focus on operational improvements, as they sometimes value consulting experience over pure transaction expertise.

4. Move to a FoF/Secondaries Setup:

   • Pros: This is a natural transition from your current role and would likely be the easiest move. It could also provide exposure to a broader range of investments and strategies.
   • Cons: As you pointed out, this might not give you the direct investment-level exposure you’re seeking. However, it could still serve as a stepping stone to other roles in the private investment space.

Recommendations:

• If your ultimate goal is to work in PE, consider the management consulting route. It offers broader exit opportunities and could position you well for a future transition to PE.
• If you’re open to a more gradual transition, moving to a FoF/secondaries setup could be a logical next step while you build your network and gain additional experience.
• For any of these transitions, networking will be critical. Leverage your alumni network from your MSc Finance program and consider reaching out to professionals in your target roles for informational interviews.

Let me know if you’d like further insights or strategies for any specific path!

Sources: Private Equity to Consulting Switch, Q&A: Former MBB Consultant, Career switch from journalism to finance...how to go about?, The Promised Land of Private Equity Turned out to be a "Monster Land", Q&A: Former MBB Consultant