Management Consulting Switch to ER?
Hi WSO,
I'm in need of some career advice. I'm currently a 2nd year Associate at a mid-sized management consulting firm. Due for a promotion to consultant during the summer, but am a bit tired of the firm and am considering a move. Saw a few ER Associate roles open at MMs (think Jefferies/Baird/Houlihan Lokey) and was wondering if the move would make sense. The role would cover a sector of strong interest for me so that would enable me to carry on that passion. My questions are: How are exits from ER in general (e.g. to PE/VC) and ER at the MM level? How is compensation and the WLB?
This would be for London.
Thank you in advance for any guidance
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Hi I'm a new user here, and in the opposite situation: I'm recruiting for management consulting from ER (I have final round interviews soon). I feel like there's a lot more financial modelling and report-writing involved in ER than in consulting. Exits in ER...are often to HFs or AMs. Rarely to PE but I've seen it be done. WLB is better than consulting or IB, but hours are really bad during earnings seasons. Compensation...really depends. I'm assuming it's similar to IB, at least at the start.
Can't comment on London specifically since i'm in the US, but at a high level:
How are exits from ER in general (e.g. to PE/VC) and ER at the MM level?
It's not great. ER places better for HF/MF/IR. Out of a ~6 year career in sellside and buyside research (left a couple years back), I've seen one person make it into PE from ER (lower tier BB). Dude got it probably because he was going in at a relatively junior level and it was focused on a fairly technical sector where he had a good amount of industry knowledge.
How is compensation...
My friends at MMs actually made comparable amounts as me once we were all past the more junior levels. Hard to generalize since compensation is very sector/analyst specific in addition to overall bank performance. I've seen kids with comparable amounts of experience as you make ~100k all in. But again, very sector/analyst/bank specific.
...and the WLB?
WLB is extremely specific to your analyst. I've seen analysts who let their associates work pretty humane hours (10-12 hour days M-Th and 8 hours on Friday when not in earnings). I've also seen an analyst who works their teams, without exaggeration, a consistent 15 hour workday Sunday - Friday, with expectations that they be on call on Saturdays/holidays, and much worse hours during earnings.
Only other thought would be that the pay and opportunity in London may be worse than the US since you guys have the whole MiFID thing going on. It's impacting the US too, but I imagine worse where you are. Hope this helps.
I'm in ER at one of the firms you listed so can give some insights
As far as exits go I echo the above the vast majority of people leave to the buyside either at a HF or long only manager. Have also seen a few people leave for corporate finance at a company in their industry as well but I would think thats an easier spot to end up at coming from your current position in consulting than from ER so if that's your goal I'd consider trying to make that jump directly down the line.
On comp, you'd probably come in as a 2nd year analyst/associate depending on how the bank titles it. I'm in a lower COL city in the US which makes it less comparable but adjusted for NYC which is more similar to London it comes in around $150k. No idea what the London guys make but know the firm adjusts per city.
Poster above hit WLB on the head, very specific to your Senior (as is your whole experience really) but most people are in around 6:30am and leave between 5 and 6:30pm M-Th, office empties at market close on Fridays and free weekends. My earnings seasons aren't much worse because all my companies report before the open so I get in an hour or so earlier and am still able to leave only an hour or so later than normal unless things get crazy like this quarter will be with all the COVID change ups. Really feel for the teams that have a lot of companies report after the close thats a totally different story.
Braininajar Thank you both. I guess another question would be around travel. I don't do the Mon-Thu travel that typical MCs do but I'm at client meetings every 2-3 weeks. This is part of the job I really enjoy as I'm good with clients and love presenting. What is the interaction like in ER?
Also, as for exit opps (mainly aimed at the anonymous poster) if I told you the industry coverage was HC would that still make a HF move possible? Not sure how many HC funds are out there or if they recruit from MMs. Any insight here would help.
Travel is gonna be Senior dependent but Id guess in any scenario it will be less than every 2-3 weeks. If you're good with clients though you will be taken on marketing trips more often and then there are also NDR's and industry conferences that would maybe put you at every 5-6 weeks. Client interaction is much more over the phone in ER but being able to handle client calls for your senior is a huge leg up at the junior level.
I am not very familiar with any HC specific funds as it is but definitely don't think being at MM puts you at a disadvantage, especially if already covering HC. The guy I replaced is covering HC at a hedge fund now and we cover an industrials segment
Thanks, this is really helpful
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