Q&A: Big4 Consulting to Private Equity, now M7 MBA

In the future I think I want to join an operationally focused PE firm. I've learned that its a big selling point, especially in the middle market, for firms to sell themselves through value-add. This may even lead me to more of an operating partner role, but I do enjoy deals and want to stay close to them.

More recently I've been exploring growth equity and find the stage very interesting. Helping businesses scale, and being able to work with a more substantial businesses than in VC environment, but still deal with exciting and rapidly growing businesses and teams seems like a great way to spend a career.

I think there's a burden of proof that comes with the low GPA to prove that you have a strong work ethic. Personally I blame my GPA on experimenting with an engineering major, but I learned quickly that it wasn't a good excuse that firms wanted to hear. Owning the mistake and identifying it as a 'lesson learned' was a better approach.

I had no help from headhunters. I think they are hired by the bigger firms to find "safe" candidates who match profiles - which isn't a box you are going to be able to check.

This meant that I had to run my own recruiting process, driving outreach to firms, starting with coffee chats and working my way into formal processes. Over time I got a few chances to take modeling tests, run case simulations, and do technical super day interviews - that's where I proved that I belonged in the associate program.

The barrier is definitely higher, but if you can stand out via networking and interview/case/modeling test performance I think it gives you an edge that makes you appear 'scrappy' and like a 'hustler' that can harness that genuine enthusiasm and effort in your work if you are hired.

First I started with an assessment of why I thought I was waitlisted. This will be unique to your application and is probably even different based on the school. Depending on if you have another opportunity to write an additional essay, etc. you will really want to focus on your gaps.

If there isn't an opportunity to submit an additional essay or materials you will need to get creative with your interaction with the school. An additional visit, a quick email to admissions, or a meeting with a key alumni that you connect with via LinkedIn can all tip the scales in your favor.

It really depends on the gap that you are trying to close.

edited - fixed typo

1. I was worried that with the hectic schedule that I had at work that I wouldn't be very disciplined if I didn't hire a tutor. I met with a tutor about 8 times I think (every Sunday morning) and more than anything it helped me stay on track. I would really recommend doing something similar, especially if you are worried that work will take over too much of your time. I have way too many friends who are in a perpetual state of "studying for the GMAT" and I think without physically spending the money every week on a tutor it can be hard to commit to a deadline.

2. There are really two dimensions to think about when comparing Big4 consulting candidates against other potential associates. The first is the banking vs. consulting dimension which I have spoken about above, but it is about playing to the firms investment strategy outside of pure financial modeling and transaction processing. This means understanding competitive dynamics, potential to add value, product differentiation, and how to manage or plan strategic initiatives after closing. The other dimension is Big4 vs. MBB firms. At Big4 you probably had more client interaction (due to clients being lower in customer organizations), you maybe were trusted with more senior work because there aren't as many MBAs stealing the show, and lastly, and I think the best pitch - is that when it came to strategic work you're not following a "playbook" as often. MBB firms do so much strategy consulting work that they have a lot more resources to leverage. At a Big4 on strategy work it is probably a new area that the firm is still developing. The ability to work well and successfully in a resource constrained environment is a big value add at a PE firm.

3. Its always a good plan to try and find commonalities like other former consultants or alumni of your college, etc, but that can be difficult. You can always start with associates, but to be honest they have very little effect on the recruiting process and certainly wont be able to break protocol to pull a consultant into a program with mostly bankers. Try for VPs and even partners. I think you'd be surprised how many are willing to speak with aspiring candidates.

Yes, but nothing too extreme.

For me it meant going to the job fair and voicing my concerns directly to a partner (not to recruiters). Presenting yourself well in this context and showing general interest can go a long way. I was able to find a partner who worked in my desired city, give him my elevator pitch, had a follow up call with a more junior resource on his team and worked my way into the recruiting process. For the record, other Big4 firms where I didn't do this - I was most definitely was eliminated during the GPA screen.

The GPA cutoff is used pretty exclusively by recruiters because they don't have better ways to cut down on the shear volume of resumes they receive. However, the firms often have much more flexible criteria because they understand the importance of harder classes vs. just padding GPA, being well-rounded with extracurriculars, and the ability to present yourself well all correlate to better success in consulting than GPA alone.

A lot of firms claimed to be operationally focused, but I do think that a good test is whether they are actually hiring consultants. If it is all bankers I tend to think that the "operational focus" is more of a firm marketing initiative.

The only alternative I would caveat is if they run a split model - where bankers work on a transaction processing "deal team" and another team of former consultants and operating partners or industry experts run portions of the diligence and take over post-transaction. Firms like that can also be very operationally involved, but I don't think they necessarily provide a route for bankers to gain an operational skillset, because the deal team stays away from the portfolio companies.

It is really hard to predict which skillset would be more effective at getting promoted. I've heard it said that succeeding in private equity takes a perfect mix of: consulting skills, finance skills (banking), and sales skills. It is hard to say which career path will help you develop all three. If you are evaluating a specific fund, just look at the backgrounds of those who have been promoted - the backgrounds of the VPs, Directors, and Partners.

If you joined an operationally focused firm as a former banker, I am sure you could develop some operational skills over time. I do think it is harder to learn than modeling, but a lot of bankers who have worked at firms where they did more advisory-style work will probably come in with some of the "consulting" skillset already developed.