OW, Parthenon, LEK, Monitor to Middle Market PE
Can anyone enlighten me on the difficulty of breaking into PE from one of these firms with about 3 years of work experience? I am targeting regional small/mm PE firms and trying to gauge how realistic this proposition is and how much of an uphill battle it will be. And also, I graduated from a decent state school with very high gpa and test scores. For PE recruiting, does it matter what university you attended if it is reasonably well respected and you performed well?
Information from anyone who has successfully made the transition or know anyone who has, would be greatly appreciated!
You should have a great shot at transitioning to MM PE from one of those firms. There's a good number of PE firms that really like guys with consulting backgrounds. This is just a random example, but check out the Associate team at Berkshire Parters ($6.5 bn fund) - http://www.berkshirepartners.com/who_team_assoc.shtml Half of the Associates have consulting backgrounds.
I'd recommend doing some research and finding the firms that hire a lot of associates with consulting backgrounds. For example, Serent Capital, a relatively new fund in SF was started by McKinsey guys. A firm like this would be great to target.
A couple others I can think of off the top of my head that like consultants:
Golden Gate Capital AEA Advisors Charles Bank Riverside Company
You should also check out the PE arms of Parthenon and Monitor as well (Monitor Clipper). Bain Capital is worth a shot too.
I know a handful of people that have made the consulting to PE transition. Also, in building the Wall Street Mentors network, I've also come across a lot of guys that made the consulting to private equity transition.
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Add Audax onto your list for potential targets for PE firms.
I'd say OW might be the worst for PE and Monitor or Parthenon the best, but it's all pretty marginal, and I imagine there's some self-selection, just like with MBB.
Why would OW be the worst, considering its almost as good as McKinsey in FS Consulting?
Better than...
I could be completely wrong about OW.
I do know that Monitor has a clear path w/ Monitor Clipper, LEK and Parthenon have pretty significant exposure to due diligence, leaving OW, which I frankly know very little about.
If so, it sounds like any of the above 4 can get you there, just like MBB can get you there. It then becomes a matter of what skills you develop, who you network with, who your clients are, etc.
Thank you for your insightful responses. I'd actually be content working at a firm with 1bil or less in management. Do these smaller firms rely on recruiters like the bigger firms? Or will I have to rely more on cold-calling/networking? And what else can I do to maximize my chances for an interview?
Better than Bain, BCG, etc. It's ranked #2 for FS Consulting I believe.
I meant it's better than McK. That ranking is based on revenues, and McK is larger and does more operations work. OW has higher fees and more of the big FS companies as clients.
Lets be honest, PE cares a lot about pedigree and brand names. You need great ability to do well in the interview, but securing the interview requires good brand names too. Looking at Berkshire partners, for instance, I see a lot of top ivy+bain, and top state+oliver wyman just isn't the same. I'm not besmirching the alums / employees of these institutions but let's be honest about perceptions.
Bear in mind that if a private equity firm wants finance jocks, it will hire bankers, and if it can't get goldman bankers it will take second- or third-rate firms' alums before they go to consultants. If a PE firm wants strategy jocks, they will go to consulting firms, and they will go for the "strategy" shops (MBB) first. The problem is that even if OW is perceived as the second-best financial services consulting firm, that can be the worst of both worlds. So while I don't know for sure, I imagine a firm with a reputation as a top strategy boutique (Parthenon, Monitor) would be better than a top FS boutique (OW), though still no walk in the park.
Sorry to be the bearer of bad tidings. Please keep your spirits up--just because it's hard doesn't mean it can't be done. You are obviously smart, and with a lot of preparation you can do it, but it's not going to be a straightforward process like with some princeton/goldman kid.
Your best bet is to reach out to alums of your firm (or school) who have made the transition and ask their advice.
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You make a valid point (though the tier thing is wrong). FS is probably a bad sector to work in when PE deal volumes are much larger in tech, retail etc.
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2x2 do you mind clearing up what FS consulting consists of? Just a focus consulting for FS companies or the actual finances of different companies? Hope that makes sense.
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