The Transition from Consulting to Finance: A Closer Look
It’s a challenging time to be a consultant. With thousands of laid-off McKinsey employees seeking new opportunities and the looming threat of AI altering the industry, many consultants are considering a move to finance. However, transitioning from consulting to finance is no easy feat.
A recent report from consulting interview prep site Management Consulted examined consulting ‘exits’ for over 1,600 client-facing employees at top firms such as McKinsey, Bain & Co, and Boston Consulting Group. The report revealed that 13.7% of consultants transitioned to finance, with only 3% moving to investment banks, hedge funds, or trading firms.
Key Findings:
Interestingly, the report also indicated that those leaving consulting for banks tended to be relatively junior employees. While 8.8% of overall exits were in ‘vice president’ roles, only 3.4% of those individuals worked in investment banking. This suggests that many consultants are making the switch to finance at earlier stages in their careers.
However, leaving consulting for banking is not simply a matter of lifestyle or pay. Banking roles often entail longer work hours, leading some former consultants to reflect on the benefits of their previous roles. Additionally, the specialization of banking roles may offer some insulation from the impact of AI, which is a concern for many generalist consultants.
Alternative Paths:
While some consultants are turning to banking, others are exploring opportunities in private equity, venture capital, and fintech. These sectors collectively represent a significant share of exits from the consulting industry. The demand for AI operating executives in private equity firms, in particular, highlights the growing intersection of consulting and finance.
Overall, the decision to transition from consulting to finance is a complex one that involves weighing factors such as work-life balance, specialization, and long-term career prospects. While finance offers its own set of challenges and rewards, consultants must carefully consider their goals and priorities before making the switch.
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