Banking-like experiences at McKinsey

jhemming2020's picture
Rank: Monkey | banana points 44

Haven't been able to find much information on the more technical finance work that it seems like McKinsey in particular does, especially through their NY office. Looking at their website and LinkedIn, they do a lot of corporate finance work and also have a sizable restructuring practice (the one that the WSJ did a less-than-flattering expose on).

Can someone with previous exposure to these practice areas of the firm comment on the nature of the work and the opportunities it offers a person? It seems like an analyst doing a lot of work in the restructuring practice, for example, would have a great path to distressed funds like Oaktree and Silver Point given the McKinsey brand coupled with a relevant technical background. Am I missing something or is this a unique niche in the consulting world that WSO seems to overlook when saying consulting is always a harder path to the buy-side?

Really appreciate any insight from people who have worked at McKinsey or met people that worked in these practice areas.

Comments (10)

Aug 4, 2018

Also very curious...

Aug 5, 2018

McK restructuring is more akin to Alvarez & Marsal, AlixPartners, and FTI than to the major debtor and creditor RX advisory/financing groups on the street. Probably not a bad experience there, though. Just important to know what you're getting yourself involved in.

Jan 11, 2019

bump

Jan 21, 2019

I had a close friend of mine work in the restructuring practice at McKinsey for almost 3 years, and as @standard and poor pointed up there it is a very different experience from RX shops at investment banks.

For instance there is little ppt/excel work and more on the ground line management work. The Partner in charge usually takes on a CFO/CRO and sometimes a CEO position within the company being advised, with the EMs and Associates running point on different work streams during the project. Hope that helps.

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Feb 11, 2019

I work at one of the top 3 RX consultancies. Based on conversations with colleagues who came from McKinsey RTS (the name of their restructuring arm) the work they do is rather operational restructuring and large-scale transformation (as harveyspanskter says - more ground line management work, greater focus on implementation). McKinsey doesn't typically deliver a lot of financial restructuring work such as cash/liquidity management, bankruptcy procedures, creditors negotiations, balance sheet restructuring, wind-downs etc. This type of work is dominated by A&M, Alix and FTI.

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Feb 11, 2019

What sort of exits does this afford to distressed debt firms?

Jan 11, 2019

What about the corporate finance practice? Does anyone know if they compete directly with banks for certain projects?

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Feb 11, 2019

Also very interested.

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Feb 12, 2019

On CF: It has very little to do with banking. The corporate finance practice is merged with the strategy practice.

What this means is that you will prepare financial models, that will allow you to understand the impacts of a given number of initiatives on the company's key metrics. The focus is not on the company's valuation, or optimizing its capital structure for a certain transaction or scenario.

Usually, the difference is that McKinsey's models are a lot heavier on the operational side, and much less detailed when it comes to capital structures or valuation analyses.

On Rx: McKinsey's work is essentially operational. You're working with people across a company's hierarchy to work out a restructuring strategy. There's not really an investment angle to it.

On the path to the buy-side: Consultants are usually disregarded. The reason is that most consultants have not developed the agility to summarize a company from an investor's POV. That's why the best path to the buy-side is through the PE practices that focus on DD's.