Strategy& Deals Strategy vs. PEVC?

A little background first, and then your questions.

For background, S& Deals Strategy and PEVC are, combined, Strategy&'s private equity vertical. Think Bain's private equity group, but split into two factions. Both groups are very good places to start a career and you will learn an immense amount.

Deals Strategy was formed from scratch after the Booz acquisition and was founded/grown with partners wooed from Bain, LEK, BCG, Bain, McKinsey, Roland Berger, Marakon, Deloitte, etc. Today, nearly all the partners in the group joined from competitors and most of them were fairly well tenured. It is a major investment area for the practice. The group was formed to have a dedicated commercial practice that PwC and S& could leverage for private equity and corporates.

PEVC came from a legacy operations team at PwC who were known as being near or at the top of their game for private equity operations consulting. They have strong relationships with a number of top private equity firms, including in the top 5, that generate a ton of repeat work. They've been around a long time and are firmly entrenched in the market. They were rolled into S& after the acquisition, as their client base and level of work better aligned with the S& brand, and it would help them attract the level of talent needed to perform that work.

How does the work differ?

This is by far the biggest differentiator. Deals Strategy focuses on commercial engagements. That means projects focus around market studies, commercial diligence for PE acquisitions, and corporate growth strategy. The reality of that work means a lot of primary research talking to customers, competitors, distributors, etc to understand a companies competitive position in the market, how they should position for growth, and their ability to capture share - it's all about revenue. PEVC focuses on operations due diligence and operations strategy. They are experts in all the levers to optimize cost cutting in an organization, and are focused mostly on doing so in a deals context. Their work is focused on operations benchmarking and crafting the strategy for how to execute on margin improvement initiatives.

To give an example - say (making this up) a PE wants to buy a ready-made sand castle business called "LazyKidsCastles".

Deals Strategy well get in pre-deal to help them assess the attractiveness of the market for ready-made sand castles and future growth potential, why customers like or don't like "LazyKidsCastles" vs. other suppliers or alternative solutions (like a bucket and shovel), whether "LazyKidsCastles" will win or lose share in that market over time, whether business plan growth metrics are achievable, etc. Or they'll be working with "LazyKidsCastles" to help them understand why certain products are winning in the market, where they're most profitable, what other profitable opportunities are available, and which of those are a good fit for their business model and capabilities.

PEVC will help the PE to assess where "LazyKidsCastles" has cost inefficiency in manufacturing, what the big levers are they can pull to reduce those costs, how much cash flow will improve as a result, which of those should be prioritized in the first 100 days post deal (e.g. close factory #6 and where to shift operations), and what should be targeted over the next 2-5 years as next initiatives (which PwC management consulting teams will pick up and push on longer term engagements).

Both teams are extremely fast paced, require strong problem solving skills, and will develop a good strategic mindset with different focuses. The work is very different - people don't float between the groups as a result.

Does one group have more opportunities for international travel? Both groups have limited opportunities. Most staff will never travel internationally (this is true of PE teams at all consulting firms, however). PEVC travels a bit more in general, but everyone's experience is different.

Is one group is more prestigious? Both groups are prestigious in different areas. In general, as an Associate, recruiters care most about the S& tagline. So all the normal exits apply. Both groups set you up well for PE/VC exits, esp. in mid-market PE. PEVC is a bit more biased for ops teams, DS more biased for deals/investment teams due to the experience evaluating markets.

While projects won't tend to bring you abroad, there are 6 month rotations available with international offices after 1 year with the firm.

Does one group work more than the other? Like any consulting firm, this varies by your manager, director, and partner more than per group. They're both deals practices, which tend to mean higher hours and lower travel, which helps compensate. 60 hours a week on a project is probably normal, but there is more downtime since projects are shorter too.

Does one group pay more than the other? No. Both groups are 100% aligned, along with the S& industry groups, in terms of compensation and promotion strategy.