MBB -> PE Operating Group
Hi!
I'm starting at McK/BCG next year at the Analyst/Associate level. I'm in a Canadian city (Not Toronto). I've always been fascinated by Private Equity Operating Groups (KKR Capstone etc.)
How does the work at PE Operating teams differ from MBB?
Does having ownership give you more control?
What is the comp like at these PE groups?
How do I best position myself to land one of these roles? Would they be easier to land post-MBA or during my tenure at MBB?
My MM-UMM fund has a group like this - its super interesting work and you get to grow companies with some "training wheels." Note I am not on this team so this is mainly from conversations I have had with the consulting group / when I was thinking about trying to move there.
Our consulting group's task portfolio is: 1. Involved with the investment team for sector specific diligence from the outset, still use MBB for industry, investment diligence, but involved for a "house view" on the subject matter 2. Work on projects at portfolio companies ranging from optimizing cost strategies and new business lines to ensuring worker safety is in place. 3. Swap in and out of roles at a portfolio company. XXX company lost its CMO? Lets send Jim from the consulting group to hold that position until a new CMO can be found 4. Heavily involved with board level projects.
Most of the team comes with both industry and consulting backgrounds. Other than firm name (which basically means the entire team is from MBB), there is no preference between strategy and implementation consultants.
Note that firms do the "Consulting group" differently where for some funds the consulting group is a part of the firm, while others (KKR Capstone) the consulting group is a separate entity that is paid by KKR funds.
When thinking about joining a group, there will be extremely different experiences based on what types of companies your fund buys.
If you are at a MM - UMM fund that buys from alot of other sponsors, you will have to develop a full fledged business plan, and strategy for the company prior to bidding to do something "better" than the prior sponsor. The in-place leadership team might be ex-PE, could be their third or fourth PE backed company, so you tend to work with extremely sophisticated people who are likely as rich/sophisticated as alot of your MDs/Partners. Think division VPs from like General Electric.
The most interesting I've heard is if you invest in large family owned businesses where the founder is still significantly involved. You get alot of ego-maniacs who aren't used to being told what to do so you get a lot of "interesting" situations.