Medical management consulting to Private Equity, Venture Capital?
I have connections to this medical management consulting company in FL, and I might work there if I can't get a SA job at a major bulge bracket bank. Basically, this company helps big medical practices start running. How good are exit opps for medical management consulting in particular for venture capital, private equity funds, or even corporate development?
For PE/VC, very very very difficult. Can't comment on corp dev. I would think this is much more applicable and penetrable.
Things working against you: a) consulting b) consulting that is not top tier c) consulting that is not management consulting c) experience will at best be fairly deficient in modeling/analysis/deal exposure d) the industry expertise you'll get is not very applicable to PE/VC (private practice is not generally a good investment target) e) Florida f) you didn't notice that I enumerated (c) twice
What about if it's for a MM PE firm that's more regional and not Bain, Carlyle, TPG, BX, etc? Also, it this matters, the connection I have within this firm has some great connections to PE firms.
Gonna recycle an old post because I think it'll give some interesting color for you.
The most logical progression from management consulting to PE, in my mind, is to join an "in-house operating" team within the PE firm. The current PE landscape has moved significantly away from relying on financial leverage and multiple arbitrage for outsized returns; operational expertise and active management of portfolio companies by the PE firm have become critical drivers of IRR. If you are interested in learning more about these operating teams, take a look at this white paper done at INSEAD (may have to copy and paste link into your browser):
http://www.insead.edu/facultyresearch/centres/global_private_equity_initiative/students/documents/ISP_Value_of_in_house_operations_teams.pdf
For young professionals, there are two hurdles on the way to making this jump:
1) While scores of PE shops have teams like this, they are not as essential as the deal teams themselves (obvious, I know) and, as such, not every firm has one. 2) There is no need for junior level consultants on teams like this; as an analyst/associate, you're not going to have any meaningful input regarding the operation of portfolio companies. The kind of work a PE firm needs a junior to do can, and will be, given to former IBD kids, etc.
So, if you want to join a team like this, you have to stay in consulting for a significant amount of time to build the experience you'll need to be competitive.
The one thing I'd note is that dedicated operational teams skew towards the larger PE shops. You won't find too many $1-3bn AUM PE shops out there with an operations team. The larger shops are generally more pedigree focused and married to the cookie cutter PE candidate. As such, operations roles at PE firms are for the most part populated with ex-MBB guys.
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