You’re ngmi if you go into a boutique role with the mindset “I’m only doing this to lateral to a better firm”

If this is you, please read what I have to say. I hope it will help to better set yourself up for success.

I encourage you not to go in with the mindset of “I’m going to lateral after a year”. In all likelihood if you let this kind of mindset control you, your career may suffer as a result. Instead of learning your job and getting better at it it’s very easy to fall into the trap of the grass is greener on the other side and miss some incredible opportunities that present themselves.

In my experience, a boutique has a lot to offer that a junior level you will never be able to replicate at a more “reputable” firm. Hours for one, there is a good chance you won’t constantly be working 90 hour weeks, this is a good thing.

Generally these organizations tend to be more flat in structure. You’ll get direct exposure to the clients, lawyers, other service providers and senior bankers. Eventually you will be responsible for essentially managing their work streams throughout the transaction. Not to mention building strong relationships with those you interact with often. You will end up learning the transaction process inside and out quickly as well as what each party is responsible for and why and how they do it. This is incredibly valuable and I cannot stress that enough. You’ll learn more about business than you ever thought you could in a much shorter amount of time because you will get exposure to more than just PowerPoint and models.

Being another gray face in the crowd of junior bankers at a BB sounds great and sure, it could present very lucrative comp and exit ops. At the end of the day though, you’ll be just that - another gray face. It’s much easier to stand out and excel at a small boutique. If you’re good at your job you’ll be rewarded and valued.

Also keep in mind these small banks were not started out of nowhere. More likely than not the founder was and is a highly adept banker with a large network who is trying to build a successful business, not just do small deals because they’re easy (hint: they’re often more challenging). They are grinders who were willing to take a huge risk instead of being comfortable doing what they’ve always done. This is a good thing and someone you should strive to be like. Small companies provide considerably greater upside potential for career acceleration/advancement at young ages because there is less red tape and a higher need to promote those who are advancing the business forward.

Of course, make sure you’re being compensated appropriately (I don’t mean taking down BB level bonuses), getting the level of exposure to senior bankers/clients you proven worthy of, and are in an environment where you enjoy showing up most days of the week. If that isn’t the case after a year, like your head up and see what’s out there. This company may be complete shit with no deal flow and horrible culture and if that’s the case then leave. If all you want to do is go work for the largest PE fund out there and do the biggest deals, go for the BB job asap, but I don’t think you’ll ever be satisfied. There will always be something newer and shinier across the fence. In summary, just see how it goes. Put your head down, grind, learn, get better and when that year mark roles around, reevaluate. Don’t go in day 1 thinking this is temporary and let that thought taint everything you do, you’ll miss great opportunity and fall behind even more than you thought you were when you accepted the role.