Private Equity vs Consulting

This is one of those crossroads questions that doesn’t have a universal “right” answer—because it really depends on what you want your day-to-day to look like, what kind of learning you value, and how you like to work.

So here's the core difference in spirit:

In private equity, you’re focused on owning and improving companies. You spend your time analyzing whether to buy a company, what it’s worth, how to finance it, and how to make it more valuable before selling. It’s heavily analytical, financial, and investment-driven. You live and die by performance and returns.

In consulting, you’re focused on advising companies—usually large ones—on strategy, operations, or transformation. You go deep into industries, help solve specific problems, and work across a range of projects. You don’t own the outcome, but you help shape it. It’s broader, faster-paced, and more client-facing.

Now about which is more attractive—honestly, it depends on what excites you:

• If you're super interested in investing, value creation, and want to eventually have a seat at the table making capital allocation decisions, PE is the goal.
• If you want exposure to a wide range of industries, to build problem-solving skills in complex environments, and to work in teams with lots of structure and feedback, consulting is an excellent launchpad.

You're right that a lot of people start in consulting and move to PE or investing, but that doesn’t mean consulting is just a stepping stone. It’s just more accessible early on, and it builds generalist skills that can be repositioned.

If you’re leaning toward starting in PE, just know that breaking in directly out of undergrad or early career is more competitive and often favors people with IB or heavy finance backgrounds. To get in early, you'd usually need:

• A strong understanding of accounting, modeling, and deal mechanics
• A track record of analytical thinking or internships in investing, IB, or finance
• Networking your way into off-cycle roles or PE analyst programs (these are rare but exist, especially in the UK or Europe)

On the other hand, consulting has more structured recruiting, a clearer pathway, and teaches skills that translate well into many future options—including PE, VC, strategy, or operating roles.

So if you’re not 100% sure yet what you want long-term, consulting might give you a wider base. But if you already know you’re drawn to investing and have the technical chops or are willing to build them fast, PE is a fantastic—but narrower and more competitive—path to pursue directly.

Either way, the early part of your career isn’t a permanent label—it’s a platform. Choose the one that gets you excited to learn fast, work hard, and build good habits. That’s the real launchpad.

I started in consulting and later moved to PE. Consulting is broad and strategic, while PE is all about deals and modeling. Many switch later, but if PE is the goal, I recommend to start early with internships and strong finance skills. Consulting is great for variety, but if you want to dive into investments right away, PE is the better move.