Tier 2 vs MBB PE exit ops?
Hi everyone,
I am currently doing an internship with a T2 consulting firm who mainly does due diligence work for PE firms (Strategy&, EY-P, LEK). My eventual aim is to use my consulting experience to go into PE.
I was having lunch with a 1st year who was saying to me that quite a lot of people leave after 2 years and go into PE, given the amount of DD experience they get. He even said that in a way it is advantageous being here because so much work is DD, whereas in MBB (maybe not Bain) juniors have to fight to get onto DD projects.
I was always under the impression that I would use this internship to try and get a role at MBB. My question is, if I am aiming to go into PE, am I better off staying where I am? Please do let me know if there are other important factors that you think I should consider.
Thank you!
Hi james.s_1, any of these discussions helpful:
More suggestions...
Hope that helps.
No one at MBB has to fight to get on to DDs, especially for the last two years - there were always more than enough DD cases. Market has slowed down slightly now due to less PE activity but still not hard to get staffed on a DD at any MBB at least in London/North America/ Germany (the markets im familiar with). However because DDs are very intense and there are many other options in the firm some people look elsewhere (or are asked to look elsewhere) if they aren't doing well in the PE practice.
Many T2 consultants do end up in PE but often at smaller funds. Many of the big funds hire only from MBB for prestige reasons so overall your potential opportunity set will be larger if you move to MBB. So takeaway is move to MBB if you can but PE is def still viable from a good t2
Agreeing with user above. From my experience, most people avoid DDs like the plague, outside of a small percent of people who either are gunning for PE, or have an intrinsic interest in the work. These people usually join a program where they are ring fenced to the PE practice for 6 month periods and do nothing but DDs and other PE work. This may vary firm to firm, but this ring fence at my company is not selective.
People at my firm fight to NOT be on DDs, not the other way around. I’m not at MBB but from friends who are I gather it’s the same. I feel like this forum sometimes hypes up DD work in consulting, but that doesn’t reflect the attitude of the average consultant. The hours are much worse for same pay, and the work frankly isn’t that important to the deal process compared to the work done by banks. Attitudes may be different at, say, Bain, where PE is the most hyped up practice area - I can’t say for sure.
Saying PE exits from a T2 are better than MBB is pretty contrarian, to say the least.
Jumping in here to add my perspective from being at Bain.
People at Bain, at least in my office, enjoy the private equity ringfence and many new ACs want to get staffed immediately on DDs when they start the job. The hours are slightly longer, yes, but people find the professional development/learning is much greater and the work is more interesting. You also typically get a day or two off in between diligences, and if you factor that in, the hours aren't much higher than regular consulting work.
Can confirm this for Bain London too. Of my AC starting class, we were about 1/3 staffed straight to PEG.
Hours are longer, but only when staffed. I've been on the beach most of this week, and the week prior to my staffing I was doing some client devpt work for a few days, which was work but more relaxed (we'd wrap up at 7pm). You do get 1 extra day off at the end of each DD (which adds up quick over 6 months) and teams do really work to get you your early night in the week (where everyone agrees you'll finish by about 6pm or 7pm and not be expected to do any work till the next day).
I agree with the perspective of being able to have greater PD opportunities, through the sheer volume of projects you can go through in 6 months vs general practice. That is one of the biggest reasons I wanted to start there: learn a lot, learn fast, get a ton of feedback quickly, and see a ton of industries early.
I do know some people who are dodging PEG if they can, and I get that. Finishing up at 11pm or midnight on a project is not fun if you have a SO or a family at home.
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