{"id":3092,"date":"2020-12-18T17:18:49","date_gmt":"2020-12-18T17:18:49","guid":{"rendered":"http:\/\/blogs.comillas.edu\/ope\/?p=3092"},"modified":"2020-12-18T17:18:49","modified_gmt":"2020-12-18T17:18:49","slug":"investment-banks-part-3-boutique-banks","status":"publish","type":"post","link":"https:\/\/blogs.comillas.edu\/ope\/2020\/12\/18\/investment-banks-part-3-boutique-banks\/","title":{"rendered":"Investment Banks- Part 3 |  Boutique banks"},"content":{"rendered":"<p><em><strong>Definition<\/strong><\/em>: A boutique investment bank can be broadly defined as a firm that\u00a0<b>DOES NOT<\/b>\u00a0offer\u00a0<b>FULL-SERVICE<\/b>\u00a0investment banking, but\u00a0<b>AT LEAST ONE<\/b>\u00a0investment banking financial service. Being an employee at boutique investment banks means you will mostly work on\u00a0<i>Mergers &amp; Acquisitions<\/i>\u00a0or\u00a0<i>Restructuring<\/i>\u00a0instead of\u00a0<i>Equity Capital Market<\/i>\u00a0and\u00a0<i>Debt Capital Market<\/i>.<\/p>\n<p>To get a better sense of where boutique investment banks are in the banking industry, we first need to know the number of types of investment banks. As a matter of fact, every classification consists of more or less subjectivity. This one is no exception.<\/p>\n<p>People can have as many types of investment banks as they want, but at the end of the day, a bank is either:<\/p>\n<ul>\n<li>a\u00a0<b>bulge bracket<\/b>\u00a0investment bank, or<\/li>\n<li>a\u00a0<b>boutique<\/b>\u00a0investment bank; but if it doesn\u2019t fit both, then it\u2019s<\/li>\n<li>a\u00a0<b>middle market\u00a0<\/b>investment bank<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>1. <em>Bulge Bracket<\/em><\/strong><em>:<\/em> The top of the financial world. If you want to know more, read <a href=\"https:\/\/blogs.comillas.edu\/ope\/?p=3023&amp;preview=true\">this<\/a><\/p>\n<p><strong>2. <em>Boutique Investment Banks<\/em><\/strong><em>:<\/em> the Rising Stars<\/p>\n<p>In the aftermath of the Great Financial Crisis in 2008, rising unemployment and dwindling faith in banking giants inclined numerous high-profile senior bankers in bulge bracket firms to leave and establish their own boutique banks. At the same time, the outsourcing of all non-core aspects thanks to technological advancements makes it easier for one or few individuals to run a boutique bank.<\/p>\n<ul>\n<li>provide fewer services, but they are more\u00a0<b>specialized\u00a0<\/b>and\u00a0<b>industry-focused<\/b><\/li>\n<li>are small in\u00a0<i>size<\/i>, but some of their deals are\u00a0<b>huge cash<\/b><\/li>\n<li>are not\u00a0<i>international<\/i>, but they are\u00a0<b>regionally recognized<\/b><\/li>\n<\/ul>\n<div id=\"row-877972959\" class=\"row row-collapse block-notice\">\n<div id=\"col-2087771754\" class=\"col block-warning small-12 large-12\">\n<div class=\"col-inner text-center\">\n<p>They are going aggressively for a\u00a0<strong>GREATER<\/strong>\u00a0share of the\u00a0<strong>M&amp;A Advising<\/strong> market! Yet, in general, if deals of bulge bracket banks are usually worth $500 million or above, the majority of boutique banks often handle deals worth $50 million, with a few worth up to $500 million.<\/p>\n<\/div>\n<p><strong>3<\/strong>. <em><strong>Middle Market Investment Banks: <\/strong>(post coming soon)<\/em><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"color: #000080\"><strong>Types of Boutique Investment Banks<\/strong><\/span><\/h3>\n<\/div>\n<p>Since any bank that offers at least one type of financial service can be classified as a \u201cboutique\u201d, there are thousands of boutiques out there. Thus, three major categories of boutiques that everyone should know to enter the banking industry are:<\/p>\n<ul>\n<li>Elite Boutique Investment Banks (EBs)-<\/li>\n<\/ul>\n<p><a href=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/Top-10-Boutique-Investment-Banks.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3131 size-full aligncenter\" src=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/Top-10-Boutique-Investment-Banks.jpg\" alt=\"\" width=\"575\" height=\"388\" srcset=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/Top-10-Boutique-Investment-Banks.jpg 575w, https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/Top-10-Boutique-Investment-Banks-300x202.jpg 300w\" sizes=\"auto, (max-width: 575px) 100vw, 575px\" \/><\/a><\/p>\n<ul>\n<li>Industry-specific Boutique Investment Banks (ISBs)<\/li>\n<li>Regional Boutique Investment Banks (RBs)-<a href=\"https:\/\/blogs.comillas.edu\/ope\/?p=3002&amp;preview=true\"> List<\/a><\/li>\n<\/ul>\n<p>Many founders of these elite boutiques are senior bankers from bulge banks, so they can leverage their expansive network and great expertise to focus on the areas of their strengths.<\/p>\n<ol>\n<li>EBs are called \u201celite\u201d because their deals are\u00a0<b>AS BIG AS\u00a0<\/b>the bulge bracket banks. (over $1 billion to up to the tens of billions of USD).<\/li>\n<li>While bulge bracket banks have thousands of employees, the employee pool of elite banks is much smaller.<\/li>\n<li>Despite having operations in multiple regions, they are usually stronger in some regions than the others.<\/li>\n<li>Similarly, they might provide a full range of services but are strong in only one or few services.<\/li>\n<\/ol>\n<p style=\"text-align: center\"><a href=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3104 \" src=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2-1024x867.jpg\" alt=\"\" width=\"852\" height=\"722\" srcset=\"https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2-1024x867.jpg 1024w, https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2-300x254.jpg 300w, https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2-768x650.jpg 768w, https:\/\/blogs.comillas.edu\/ope\/wp-content\/uploads\/sites\/13\/2020\/11\/vcsPRAsset_3434416_120672_e11be4a2-e850-405d-abc1-1a2c6320df58_0-2.jpg 1404w\" sizes=\"auto, (max-width: 852px) 100vw, 852px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<p><!--more--><\/p>\n<h3><span style=\"color: #000080\"><strong>Are these <em>elite<\/em> really so attractive?<\/strong><\/span><\/h3>\n<p><span style=\"color: #ff6600\"><em>PROS<\/em><\/span><\/p>\n<p>Be it bulge bracket or elite boutique, the first qualification you need to successfully apply for both categories is an\u00a0<b>extremely competitive profile<\/b>.<\/p>\n<p><b>Cash Compensation Can Be Much Higher Than Bulge Brackets<\/b><\/p>\n<p><b>Great Exit Opportunities:\u00a0<\/b>when it comes to exit opportunities, brand awareness is always the first criteria. Being the top in their areas, elite boutiques can make you a competitive candidate for future entry into private equity and hedge fund roles.<\/p>\n<p><b>Deal Experiences Are More Exciting:\u00a0<\/b>smaller teams usually equate to bigger responsibility for each member in a deal.<\/p>\n<p><b>Higher chance of getting a full-time offer.<\/b><\/p>\n<p><span style=\"color: #ff6600\"><em>CONS<\/em><\/span><\/p>\n<p>Great as it may seem, working at an elite boutique investment bank is not as fabulous as it looks because:<\/p>\n<div id=\"row-1991669828\" class=\"row row-collapse\">\n<div id=\"col-1733752647\" class=\"col small-12 large-12\">\n<div class=\"col-inner\">\n<ul>\n<li><b>ZERO (almost) brand awareness\u00a0<\/b>outside the finance industry.<\/li>\n<li><b>Average Deal Still Smaller<\/b><\/li>\n<li><b>Few hiring\u00a0<\/b>and\u00a0<b>hard interview\u00a0<\/b>equal\u00a0<b>extreme competition\u00a0<\/b>to win internships: Since their scales are small, elite boutiques can afford to hire only a few hundred entry-level employees worldwide<\/li>\n<\/ul>\n<p>So, are Boutique banks for me?<\/p>\n<p><strong>\u2192If You Are an Early Bird with Excellent Networking Skills<\/strong>, then probably NOT. Go for the BB<\/p>\n<p><strong>\u2192If You Are a Late-Starter and Badly Want to be An Investment Banker<\/strong>, then, Definitely YES<\/p>\n<p><strong>\u2192If You Are Tired of Dealing with the Politics in Bureaucratic Firms and Wanting a Better Lifestyle and Independence<\/strong>, then YES. Life is easier and more breathable there.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"row-1991669828\" class=\"row row-collapse\">\n<div id=\"col-1733752647\" class=\"col small-12 large-12\">\n<p><em>Source<\/em><\/p>\n<p><em>bankingprep.com<\/em><\/p>\n<p>Charts by wallstreetmojo.com<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Definition: A boutique investment bank can be broadly defined as a firm that\u00a0DOES NOT\u00a0offer\u00a0FULL-SERVICE\u00a0investment banking, but\u00a0AT LEAST ONE\u00a0investment banking financial service. Being an employee at boutique investment banks means you will mostly work on\u00a0Mergers &amp; Acquisitions\u00a0or\u00a0Restructuring\u00a0instead of\u00a0Equity Capital Market\u00a0and\u00a0Debt Capital Market. To get a better sense of where boutique investment banks are in the banking &#8230; <a title=\"Investment Banks- Part 3 |  Boutique banks\" class=\"read-more\" href=\"https:\/\/blogs.comillas.edu\/ope\/2020\/12\/18\/investment-banks-part-3-boutique-banks\/\" aria-label=\"Leer m\u00e1s sobre Investment Banks- Part 3 |  Boutique banks\">Leer m\u00e1s<\/a><\/p>\n","protected":false},"author":170,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[578,9,581,575],"tags":[],"class_list":["post-3092","post","type-post","status-publish","format-standard","hentry","category-asset-management","category-empleo","category-finance","category-investment-banks"],"_links":{"self":[{"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/posts\/3092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/users\/170"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/comments?post=3092"}],"version-history":[{"count":5,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/posts\/3092\/revisions"}],"predecessor-version":[{"id":3222,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/posts\/3092\/revisions\/3222"}],"wp:attachment":[{"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/media?parent=3092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/categories?post=3092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.comillas.edu\/ope\/wp-json\/wp\/v2\/tags?post=3092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}