Despite this issue being not directly related with Consulting, I was wondering about exit options of management consultants into PE of Hedge Funds.I guess that in this kind of jobs traditionally (someone correct me if I'm wrong), as years came and went, one could either stay as a consultant or get into the industry. Now apparently it is possible to jump into these 2 new sectors. Wondering what you think about such jump: Is it really feasible?Where in particular could they jump to? (both in terms of firm or job to be done in within the PE/Hedge Fund firm)Ideally how experienced should one be?What kind of main area of expertise would be most appropriate?In general: What kind of profiles ares sought by these employers in the consultants?Also, if anyone has any story to share regarding this topic I think we would all love to hear it.Happy Monday to everyone. :)

I am in the process of making that move: I have an offer from a major PE fund, infrastructure specialist ( mentioned in a thread below...) and I am considering it. The only thing that scares me is the impact it will have on my lifestyle - but i know its time to roll up my sleves and the investment will be worth it. The skills they look for, at a junior level, are quantitative analytical skills - mainly for valuation. It is rare for mc's to gain these outside of MBBB. I am still very junior - and did have to fall a level in the transfer - albeit the salary is almost double. What is your current situation? If you share some details; employer, expertise, education etc maybe i can give you a few pointers

Good morning, Fred,Actually I wasnt thinking about movinng to PE right now, but considering it for a maybe near future.I'd like to speak without the euphemisms and hints that this forum requires. Would you mind contacting me to my email, please?Its sunnysundaydawn@gmail.com.Regards,Mr T

If I could be so cheeky as to get in on this thread as it appears I am in a very similar situation to MrT - considering a possible future move to private equity. A couple of exra questions to the one asked to MrT currently spring to mind:- If I have the opportunity while I'm still in consulting to pick any particular types of project, are there any you would recommend?- Fred, as you are holding an offer from an infrastructure specialist, have you done any consulting work in this area?- And finally, obviously this will change firm to firm, but how did the application process run (in comparison to the fairly standard consulting process)?If you're willing to let me piggyback onto this thread, and you want to talk by email mine is DrD1986@hotmail.co.uk and I will share the details of how a family member of mine moved from consulting to something very close to PE.Dan

I've noticed on the websites of the major PE players (Cinven, KKR, Carlyle...) that most associate hires are coming out of Bain and BCG, with hardly anyone from McKinsey and BAH. Could anyone give an explaination for this observation? Secondly, what would be the opinion of PWC strategy regarding a switch to PE? Would the focus on PE due dilligence work be an asset, or is PWC just not good enough?

Those are 2 good questions, Anon. Regarding the 1st question, it would be interesting to know their field of expertise too.Regarding the 2nd question I would like to extend it, instead of PWC, to the Big Four (Del, KPMG, E&Y and PWC).

Apologies I dont have time to send individual emails although I am happy to help out on the forum. "If I have the opportunity while I'm still in consulting to pick any particular types of project, are there any you would recommend?" Corporate strategy, commercial due diligence, vendor due dilligence, buy-out strategy, exit strategy, valuation. Be sure to do a LOT of quantitative analysis- Fred, as you are holding an offer from an infrastructure specialist, have you done any consulting work in this area? no- And finally, obviously this will change firm to firm, but how did the application process run (in comparison to the fairly standard consulting process)? The applications for PE and interview processes are brual. I had 3 rounds of pannel interviews, exams and final assessment centers ( i am mid 20s).From what I have seen you can get into PE from 3 classic routes:1) Investment banking2) MBBB - private equity / investment banking teams3) Big 4 - but AUDIT practice.In all my interviews - the banks and PE houses do not recognize 'consultants' from anywhere other than MBBB and a few others. If you are a consultant at a big 4, then I would suggest you either a) try to get into a PE team, or IB team within your consulting arm or b) switch to banking to then go to PE. Mind your age - in PE from consulting you either go early on, or much later!The hours are brutal and the pay is less than IB, so be sure why you want to go ( at least before director level)As far as hedge funds go its nearly impossible to get in from anywhere other than a bank. You must have advanced maths ( ie. phd in mathematics, fluid thermodynamics or similar) and be passionate about statistics. A friend moved from GS ( associate) to a hedge fund and now is on 400k plus 600k bonus at the age of 26. Good luck!

Fred,Thanks for the answer.Just to extend on your possible routes into PE, how about this one:A few years of consultancy (either MBBB or big 4) then MBA then straight into PE (or maybe another year if you want/are able to get your employer to pay the cost of the MBA) ?Cheers

Fred, you mention that the most common big four route is via audit. Why is this? Would strategy consulting/transaction services/due dilligence not be an acceptable alternative?

Additionally to last question from anon, could I please ask you to elaborate a bit more on commercial due diligence, since that's what I do at a Big 4.Also, could you please comment where in PE/Hedge Funds would they work with this kind of expertise?Finally (apologies for taking so much of your time), how important is it to have knowledge of the industry to be invested in?Thanks again, Fred, good luck with your new work (and with your new life!). :)

Mr T, Without deviating too much from the thread of this post, you mention you work in Commercial due diligence at a Big 4. I am currently working for a major consultancy (although not MBBB OR ACN I hasten to add) in their general strategic offering and was thinking of making the move to an accountancy house to work in your line of work.I am basically looking for slighlty more analytical work an strangely enough quite enjoy accounting, the only thing that is holding me back is my lack of knowledge of the intrinsic aspects of your job adn what you do on a day-to-day basis.Could you help me out and specifiy what your days involve, the good, the bad and the ugly?Thanks in advance

Hi Anon,Im glad that I can help. Just bear in mind these caveats, I am not practising Commercial Due Diligence (CDD) in the UK, so take my comments with a pinch of salt.In general CDD has absolutely nothing with accounting, in fact it is very close to consultancy, and many times the lines blend.The difference? We do Commercial Strategy, hence looking at just one part of the business. It belongs to Financial Advisory Services, but we dont do really that much Finance, except the typical slide with the P/L stuff.Since it is related with M&A work, there are peaks and there are valleys. Basically I do 9 to 8. Lots of teamwork involved and plenty of looking for info and analysing it. You definitely have to like it, because some days it will be really boring.Please, dont hesitate in asking again, if you want me to elaborate in something more. I realise I was a bit vague, but I am not sure about what you wanted.

"Fred, you mention that the most common big four route is via audit. Why is this? Would strategy consulting/transaction services/due dilligence not be an acceptable alternative? "Yes this is also a possibility. However you have to be an ace at accounting, modelling and general corporate finance. go to www.efinancialcareers.co.uk and check out the private equity posts - you can see which ones ask for corp finance experience from big 4. Audit usually gives a mastery of accounting, which is the foundation of modelling etc that the firms look for. PE firms do recruit at mba level, again - this is not a ticket to enter, rather an extra credential. it must strictly be from a top 5 (finance) mba and coupled with relevant experience. what im trying to say that if you are doing CDD at KPMG and then go to harvard - you might not get into a PE fund right away. I dont know about CDD. MOst PE funds do their own. However if by doing CDD you establish lots of good relationships with various funds, including transaction interaction - then this can be of benefit. WHat seniority are you guys? if you are senior then it is much harder. If you can give me your profile then i can try to give some more tailored advice.

Good morning,I have been 2 years in the market. Been working as a 2nd year in CDD for a Big 4 for nearly a year now. Economics graduate from the LSE (2:1). I was wondering: what is senior for you? How many years at work would it make it hard to make the jump? 3 maybe?You also mentioned that the very experienced people can make the jump too. Are you talking about Senior Manager-Partner level or maybe just a bit more junior?Thanks for all your help, Fred

Mr. THave you tried to change? What has been the reaction from recruiters? This should be some good indication.'Junior people' - im referring to perhaps a consultant / senior consultant - can enter PE at analyst level.'Senior people' - Directors and Partners can sometimes move across to PE for thier industry knowledge and most importantly relationships. Anything in the middle i would exclude. You are at the perfect, in my opinion, stage to move. If i were you - I would try to join an investment bank that manages funds - such as Goldmans PE fund, Citigroup, UBS etc - even as an a1 ( your salary will still be double what you are on now so who cares)stay two years there, gain some excellent training and then try to make the move to a sole fund. I would leave where you are asap and forget the MBA too - going to into corporate finance at an IB will be your best and fastest route into PE

Hmmm, thanks for that Fred.I would have thought that an MBA would be a pre-requisite to move to PE...Jus one more (hopefully last!) question: where would someone doing CDD land in a PE?

MateI dont know how much you know about PE and why exactly it is you want to join. MBAs are not useful to people in finance - they are a ticket to apply from people that started thier careers in something else and want to shift over. The people in investment banking / PE / VC that pursue an MBA are prob les than 4%. CDD is NOT a private equity tool of enough importance for it to be a marketable skill. PE firms are the top of the top - and without offense, they are good at what they do - they certainly dont need to hire people with CDD experience. They need people, at your level, with intrinsic MODELLING experience - which you can only get in investment banking ( preferably m&a). I would strongly suggest you contact a recruiter, like perecruitment, to see where you stand and if you have a chance.

PE Man,No offense taken, no worries. I dont mind hard words if they make a good point.I was also having doubts about what could I exactly do for a PE with my background.However, I have heard of Management Consultants who join PE houses or Hedge Funds at Associate levels after doing an MBA. Am I wrong there?Why and for what would a PE need a MC?

here you go... http://jobs.efinancialcareers.co.uk/job-4000000000213663.htm

Can you explain what you mean by modelling - excel - or more complex?