guys, I recently got an offer for base of +USD100K + Bonus from an Int’l Consulting firm. My background: 4 yrs work experience in a Corporate setting, Masters degree and a quant undergrad. Passed all CFA exams, not applied for charter yet, but will soon. I am based in Canada and this offer (Total Comp) is much higher than, say, U of T’s Rotman median Total comp for their MBA grads (I’m not a Rotman grad) . I’m thinking that a few years (2-3) down the road, I can probably make the switch to Private Equity groups due to my Consulting experience. The con is that this will not be IB experience and may derail me for a few years. What do you guys think ?
Sounds like a great offer! You know best, but if you find this work interesting with growth potential, then go for it! PE will not be the same in a few years from now, but that is no matter, as long as this gets you to your next destination.
Thanks Bill. Could you elaborate on the “PE will not be the same in a few years” BosyBillups Wrote: ------------------------------------------------------- > Sounds like a great offer! You know best, but if > you find this work interesting with growth > potential, then go for it! PE will not be the > same in a few years from now, but that is no > matter, as long as this gets you to your next > destination.
I think that PE is in a bubble, and it’s a bubble showing signs of deflating. Private Equity will still be big, and relevant, but if the credit bubble starts to deflate, PE could slumber a bit. That’s speculation, and don’t rely on that for picking a job, but tuck it in the back of your mind when setting long term goals.
TAKE IT!
Jock Wrote: ------------------------------------------------------- > > I am based in Canada and this offer (Total Comp) > is much higher than, say, U of T’s Rotman median > Total comp for their MBA grads (I’m not a Rotman > grad) . I’m thinking that a few years (2-3) down > the road, I can probably make the switch to > Private Equity groups due to my Consulting > experience. > > The con is that this will not be IB experience and > may derail me for a few years. > > What do you guys think ? Why would you want to go into IB after being in PE? Also, can you explain the recruitment environment where you are? In the States, it is not very easy to make a transition from consulting to PE unless you are from a top 3 consulting firm.
Jock, tell them you don’t get out of bed for less than $5.
numi, it is actually the other way around - PE after IB has been the usual career path for many PE analysts. Of course this is just one of many paths since what is needed in PE is a really good understanding of how the business works. That is where Consulting comes in. And so do all the Experts with PhDs/Patents-Holders/ex-CEOs…so there is not any one golden path, but IB will be good for me since I already have a diverse amount of experience in another industry. [Of course, by IB, I am not referring to sell-side research.] Edit: another factor that I am considering is the (lack of) usage of the CFA charter…will probably use it, but certainly not as much if I was, say, a PM 
Bryant, you have to take the meds like the doc prescribed.
Jock Wrote: ------------------------------------------------------- > numi, it is actually the other way around - PE > after IB has been the usual career path for many > PE analysts. Of course this is just one of many > paths since what is needed in PE is a really good > understanding of how the business works. That is > where Consulting comes in. And so do all the > Experts with PhDs/Patents-Holders/ex-CEOs…so > there is not any one golden path, but IB will be > good for me since I already have a diverse amount > of experience in another industry. > > Edit: another factor that I am considering is the > (lack of) usage of the CFA charter…will > probably use it, but certainly not as much if I > was, say, a PM I am quite familiar with the PE process and I think you misunderstood what I was saying. I asked why you were concerned about getting into IB if you could break into PE because you expressed concerns over “derailing your path to IB.” Further, if a PE shop is looking to hire someone who can add operational value, then they would be more likely to look for someone with a consulting background. However, up through the principal ranks, the majority of folks are hired from finance because of their familiarity with the capital markets, deal execution, and so forth. It’s true that I know quite a few people who went to the mega buyout shops from top 3 consulting, but in most cases they had been staffed on M&A or buyout advisory and were familiar with the deal process. Even so, at least 85% of the analyst/associate classes at these places came from a finance background. Also, don’t forget that there are already many partners with operating and industry expertise and someone just a few years out of college really doesn’t have any “expertise” to speak of, which is why there aren’t as many ex-consultants in PE at the junior level. I’m not saying that you can’t make the transition to PE – anything is possible – but there are tons of people gunning for PE jobs, and if the markets turn sour and folks at the big IB’s lose their jobs, you can bet that they will make hiring for PE much more competitive. If you can get a PE job now and that’s what you want, definitely go for it. My sense is that you will really have to know why you want to get into PE, why your skill set makes you attractive, and demonstrate a good grasp of excel in terms of building operating models and buyout models, as well as revenue builds.
Thanks for the input numi, but you misunderstood my initial post. I did not say “derailing your path to IB”, rather, “The con is that this will not be IB experience and may derail me for a few years.” and from the context of the post, it should be evident that I am referring to derailing me from the PE path in that the IB route may be the quickest route to PE. >"Also, don’t forget that there are already many partners with operating and industry >expertise and someone just a few years out of college really doesn’t have any “expertise” >to speak of, which is why there aren’t as many ex-consultants in PE at the junior level. " Wrong in my case. I hold a patent and consequently am an expert by virtue of that fact. I appreciate your comments about the “tons of people gunning for PE jobs”, but I am sitting on a fairly “phat” offer which tons of other people were gunning for as well.
OK, so I misread your post. Hopefully someone else can benefit from what I wrote above. BTW, congrats on your “phat” offer, whatever that means
Disclaimer: friends have told me that this is good for central Canada, but in the US, this may be average. Then again, living costs and everything else [esp in NY where I would ask 200% of this number] plays a huge factor.
“Phat” Absolutely no idea what it means, I use it to sound cool when I talk up all the undergrad chicks. Ahem, any undergrad chicks reading this ?
Jock, earning six figures does not absolutely require you to act like your head’s up your butt, despite what you may have heard from your colon. Disclaimer: friends have told me that you’re pretty irritating for someone from central Canada, but in NY you would be merely average.
jobsearch Wrote: ------------------------------------------------------- > Jock, earning six figures does not absolutely > require you to act like your head’s up your butt, > despite what you may have heard from your colon. > > Disclaimer: friends have told me that you’re > pretty irritating for someone from central Canada, > but in NY you would be merely average. lol! i’m not sure whether i should take exception to this since i’m also from nyc, but that’s pretty funny.
jobsearch Wrote: ------------------------------------------------------- > Jock, earning six figures does not absolutely > require you to act like your head’s up your butt, > despite what you may have heard from your colon. > > Disclaimer: friends have told me that you’re > pretty irritating for someone from central Canada, > but in NY you would be merely average. Yawn.
Jock Wrote: ------------------------------------------------------- > Bryant, you have to take the meds like the doc > prescribed. My comment about not getting out of bed for less than 5 alludes to the comment made by Vince Vaughn in the movie, Mr. and Mrs. Smith. A bad joke, I know.
Sorry Bryant, I’m very out-of-the-loop. Did like that dance sequence though. I think he was still shacked up with that Friends gal then. bryant Wrote: ------------------------------------------------------- > Jock Wrote: > -------------------------------------------------- > ----- > > Bryant, you have to take the meds like the doc > > prescribed. > > > My comment about not getting out of bed for less > than 5 alludes to the comment made by Vince Vaughn > in the movie, Mr. and Mrs. Smith. A bad joke, I > know.
If it is a front office job, you are getting way underpaid compared to back office.