MBB to PE time frame?

I've read that PE recruiting for BB analysts occurs very early in their tenures.

Do candidates from MBB applying for more operational roles interview at the same time (~18 months prior to starting at a fund)? If so, I would imagine this doesn't leave many engagements for one to establish a strong track record at MBB so on what basis are candidates from consulting assessed? Is casework in particular practice areas (e.g. dilligences, turnarounds) essential for getting looked at for operational positions?

Would also be grateful for further detail on the MBB->PE transition.

 

Yes, PE recruiting from MBB will begin around winter every year for BA/AC/A in their 2nd year.

I know that people with experience in the PE/CF practices are more likely to exit to PE. Could be because funds look for this experience. Could also be because analysts who do PE/CF cases are more interested in PE.

I do also know that PE as an exit opp is becoming less desired (at least in my office).

 

I have not seen any decline in interest in PE in the last few years (maybe vs. 2006, but of course I was not around to witness that era). I have not heard much talk about saturation in PE being a big driver of whether or not people recruit for PE, but that may becasue the big funds that hire consultants (Advent, Berkshire, H&F, GGC, Bain Cap-ish) are all doing quite well. (The only people I heard talking about industry stagnation were at poorly performing funds eg, TPG -- I think local conditions inform this perspective, especially at the ~associate-VP level.)

Reccruiting for the deal team takes place in the Spring ~18 mos before August start dates. This can be 6 months into your 1st or second year -- people recruit at both stages. Recruiting for ops teams is either ad-hoc for immediate start, or formalized but much later (ie, just a few months before start dates).

Your case work does not matter all that much per se, but of course people who are interested in recruiting for PE tend to steer themselves to doing DD work for financial investors.

"'In summary, people are morons and who cares. Make a shit ton of money. I've never seen a Ferrari paid for by what people think.' - ANT" -rufiolove
 

Acronym, let's say I were shooting for a position with a deal team at one of those big funds you mentioned. What are the major characteristics on which I would be screened? I assume first-impressions on the headhunters and modeling skills are high up there, but how are things like college GPA/major, test scores, college extra-curriculars weighted? Second, when would be advisable to hit the gas on networking with headhunters/people on deal teams?

 

Recruiting timeline seems to change every year...Bain Cap will go with the megafunds, so same timing as the bankers, and to my knowledge, that includes their portfolio group as well. The middle market funds which hire consultants for investing roles are generally looking in the winter/spring. The process will stretch out...I had a pretty steady stream of things from February or March to July, although I was interviewed late in the process for some and probably early for others.

Life, liberty and the pursuit of Starwood Points
 

Depends if you want to stay 2 or 3 years. Offers are typically 14-16 months before start date for investing roles (similar to banking), though some funds recruit for immediate or near term start dates, ops groups are much closer to start date. For instance KKR capstone will recruit in August for a September / October start. Consulting in general tends to be more flexible than banking for recruiting depending on what you want

 

KKR Capstone has recently been sending out feelers for summer 2015. Bain Cap ops recruits a few weeks after the deal team, was also looking for an immediate start around April or May this year.

For the deal side, recruiters and associates will usually start reaching out around December (ie, 20 months before start dates), and then MF/upper-MM (and MM looking to recruit the same folks as those guys) will kick off sometime between February and May-ish (if you're lucky). Once recruiting kicks off, MF/UMM will fill their classes within a few days.

"'In summary, people are morons and who cares. Make a shit ton of money. I've never seen a Ferrari paid for by what people think.' - ANT" -rufiolove
 

Bain Capital portfolio group was using Amity earlier this year. KKR Capstone associates are reaching out directly, but if they were to use a recruiter, my guess is they would use CPI or SG Partners.

"'In summary, people are morons and who cares. Make a shit ton of money. I've never seen a Ferrari paid for by what people think.' - ANT" -rufiolove
 

Anyone aware regarding the situation in Europe (deal team)? Do headhunters get in contact with the consultants (analyst level) or how is the process there? You really have to apply in 2014 to start in mid 2016? Seems to be a quite short time frame (~2-5 months for most entries in Europe) to gain experience in consulting before applying for PE.

 

Depends on the fund and your profile, but some headhunters will reach out toward the end of your first year, in which case you'd stay at MBB for ~24 months. Megafunds may trend toward the earlier side, although obviously banking is a better way to get into most megafunds. Other things will open up periodically during the fall/winter, but the spring of your 2nd year will likely be the peak time, in which case you'd stay for up to ~36 months.

Life, liberty and the pursuit of Starwood Points
 

Well, for starters, your question's only relevant to mega funds if they move back to something like the old hiring timeline, otherwise you won't be able to interview with them until you're ~18 months in anyway.

But broadly, I haven't seen anyone interviewing at 18 months (i.e. for jobs that start after the third year in consulting) be disadvantaged. I know a number of people who've done that and ended up at great places. Ultimately it's up to you--people do both timelines. If you're at MBB headhunters will probably start reaching out to you almost immediately after you start, so you certainly can interview at the six month mark if you walk in prepared to do that and set yourself up for it.

 
Best Response

Most consultants are hired into PE at then end of their second or third year (and start interviewing ~18 months before that). Whether to interview in your 1st or 2nd year is a personal decision you have to make based on how prepared you are for interviews. Typical time line consulting 2-3 yrs --> PE 2 yrs --> MBA 2 yrs --> PE. Given it's becoming more difficult for pre-mba PE guys to get post-mba PE gigs a lot of ppl are opting to not go to school and stay at their PE firm if they have that option. That's another discussion entirely and one you can learn a lot about by searching this forum. PM me if you have more questions.

 

Everyone at my fund stayed in consulting for 3 years, so we went through recruiting about 18-24 months in. However, I started recruiting less than 12 months. There was a slow burn for a long time.

Those that go for MBAs have left after 2 years, the people who have stayed on for 3rd years often end up being direct reports.

Life, liberty and the pursuit of Starwood Points
 

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