T2 Consulting Exits

The best thread I could find on this topic was from 2010 and it seems much has changed since then including what "T2" entails. Title explains it pretty well. I've heard it's pretty common for MBB to exit to PE and even sometimes HF/VC outside of the regular F500 corp jobs. Is this possible for consultants from T2 shops? I know some T2's specialize in PE work so I would think that would help with exits but is it possible for T2's to get to the same places as MBB? What T2's have the best exits overall? Is B-School the only option for T2's to break into the buyside?

Comments (20)

 
  • Intern in PE - LBOs
Jun 15, 2020 - 11:58am

Since T2 Consulting firms tend to specialize, the 'typical' exit opps tend to vary by the firm. For instance, consultants at EYP and LEK usually end up working on a ton of PE DD projects; you'll see many of them exit into PE (especially middle market) or GE roles. I've also met several who joined growth companies in strategy roles (e.g. Uber).

That's not to say that your T2's specialty determines what is available for you. i.e. It might be less common for someone at Kearney to go into VC/PE, but I've definitely seen it happen in my network (I don't believe they focus relatively as much in PE DD but could be wrong). You can also see for yourself on Linkedin.
I have limited data on Accenture and OW.
Source: Older Sibling in T2 -> Growth Equity

 
Most Helpful
Jun 15, 2020 - 12:52pm

If you are pre-MBA and are in a DD-heavy firm or working a lot in the PE practice, you can exit to PE, even if you are at a T2. The exit will not be a big-cap PE fund like KKR or Blackstone, but mid-market PE and VC are a reality. I have seen it with my own eyes.

However, if you are at a T2 doing nothing related to PE or VC work, then it will be a tough transition. Getting into PE/VC is hard from any firm. There are tons of people leaving MBB's all the time and most go into industry, not PE/VC.

 
Dec 8, 2020 - 10:14am

Consulting to PE big-cap is not common. Regardless of the firm. MBB might have a slight edge, but odds are still not in your favour.

I found a lot of people overestimate the differences in exit opps between Tier 2 and MBB, when these firms directly compete for the same clients and engagements 

 
Dec 30, 2020 - 10:37am

PE exits are not nearly as common as you think from consulting. The big cap funds is a rarity, even from McK or Bain (BCG doesn't place as well in PE). MM or LMM is more common (or operations teams at PEs). The most common exit regardless of MBB or T2 is the standard tech / F500 corporate strategy gig. The exit opps across firms are fairly similar as the work you do at these firms is fairly similar. The real difference is on the far right of the distribution where - if you're a top performer with the appropriate background and experience - MBB can open additional doors that are otherwise closed, like big cap PE, VC, niche social / government opportunities, etc.

 
  • Associate 1 in PE - LBOs
Dec 30, 2020 - 11:20am

I'll say it once I'll say it again, OW has really good exits... look at the other forum posts about OW before you @ me

 
  • Associate 1 in PE - LBOs
Dec 30, 2020 - 5:49pm

At a large cap and haven't seen a lot of T2 beyond mid market across the well-known funds. There are always a few super stars though, seen some from Roland Berger, Parthenon-EY, OC&C and maybe LEK off the top of my head. Sure I've missed the odd one here or there but vast majority is MBB it seems. Not aware of any OW but sure there must be a few at least. This is for Europe.

 
  • Prospect in IB-M&A
Jan 5, 2021 - 12:46pm

Do you think its higher proportionally because OW has the rep of being more "quanty" or is it just in line with the general exodus towards tech?

 
  • Prospect in IB-M&A
Jan 7, 2021 - 7:52pm

what would i have to do to make it into VC? i would like to ideally avoid having to work hard career wise like I did at university to get into consulting (doing things which will make my app best for consulting) and just chill. But Im guessing Im going to have to do extra things in order to get into VC - what would those things be? would it be a good idea to create my own business on the side? 

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