Q&A: Boutique Investment Banking Analyst
I'm currently an analyst at an industry focused boutique located in the NY area(throwaway account to protect identity). At the risk of being screamed at for having no prestige, I'd like to answer people's questions on life at a leading boutique covering a specific industry. There is a ton of info on this site regarding BBs but not a lot covering boutiques. I know when I was researching the industry I had questions about life at boutiques so I figured I'd give back a little and answer anyone's questions!
Do you work at a boutique investment bank?
Whats comp like? and deal flow? Are you guys strictly M&A?
Comp is about 10% below street. The industry we cover is pretty large so deal flow is strong. That being said, the deals we work on tend to move very slowly so they will last a long time and be spread out over a couple of quarters. We are not strictly M&A. Also do financing, restructuring, and some ad hoc advisory work.
Are bonuses ever bigger than BB?
How is the recruitment at boutiques regarded for individuals with work experience from non traditional backgrounds such as former engineers or ex military?
Looking back, do you wish you had went to a BB or MM instead?
thanks for doing this, just added your post to the frontpage
What did you find appealing in a boutique compared to a BB or MM?
In terms of BB vs boutique overall, the lifestyle and work-life balance is (at least at my firm) not even comparable. It is so much better.
Also, I am exposed to senior management a lot more than I would be in a larger firm. For example, the first week of work the CEO and COO(who both have over 40 years of experience and don't need to acknowledge analysts) made a point of going to lunch with the first year analysts. It doesn't sound that important but the little things definitely add up.
What steps did you take to land that job? Did you major in finance? I'm trying to do something similar as you but with a Master of Accountancy..
For boutiques, I think landing a job is a lot of luck. More so than BB's. The firms are much smaller so it is more about fit and not that you are some excel superstar who can pull 4 all-nighters in a row.
My advice would be find a few boutiques you are actually interested in and focus on them heavily. Get to know the companies and the industries they cover(If they do) so you can actually hold a conversation about them(If you can't already). I know I went into a ton of interviews trying to pretend that I was fascinated with what the group did. It definitely helped when I was sincerely interested in the industry.
What exit opps do you expect or are aware of in terms of coming out of a boutique vs bb?
Exit opps vary greatly. A lot of the analysts(probably the majority) stay with the firm and are promoted directly to associates. The hours are not nearly as bad as BBs so it is a lot more appealing.
I've also seen people leave and move over to another bank or PE firm during and after their 2 years. I haven't seen anyone go to a HF.
Because my firm focuses on a specific industry you also see a ton of people leave finance all together to work in that industry. It really depends on what your interests and priorities are.
Are your clients mainly in the NY area? If no, how often do you travel and where to(international?)
The analysts don't travel at all and the associates rarely travel(maybe 3/4 times a year).
Interesting so you are in the office all the time? do you know if this is common amongst boutiques that there is barely any travelling?
What is the lifestyle like for analysts/associates?
Keep in mind, I make ~10% below street and the exit opps are not as killer as a top GS/MS group. For me, though, the trade-off is definitely worth it. I work hard(in comparison to the rest of the world) but still have some aspects of a normal life.
What kind of target did you go to? Ivy, Top Public, Top Non-Ivy Private, Stern/Wharton?
What're your plans in the next few years there? Do you plan to roll into an Associate position there or find an exit else?
Networking is a big factor when it comes to getting an offer from a BB or even mid-market firm. How does that differ in case of a boutique? Are boutiques more focused on recruiting on campus from target schools or via a standardised online application process or do they too give out offers to people who've proved themselves during networking?
Do you feel like you have more responsibility at your firm than you would at a BB? If so what are some pros v. cons?
Thanks a lot, really appreciate the insight
What frustrates you the most about working at a boutique? When I was at one, it was always the unsophistication of the clients. Financials from QuickBooks, balance sheets that never balanced, no CFO, CEOs who did not know the difference between EBITDA and operating expenses, etc. Just trying to see what your take is.
I can definitely relate to that. And true, it is important to keep in mind that there are many different types (sizes) of boutiques.
At a boutique is the shift to more of a relationship development/ sales role from straight analyst crunching numbers happen quicker?
Ok, thanks. That is good to know. I am meeting with a lower/middle market bank today in a small midwest city. They only have 4 or 5 people in total. So that is helpful. Good luck!
You've said that your pay is about 10% below the street, so is the same true for bonuses or how would you say your bonus compares?
Thanks for taking the time to do this.
what's the exit op in your head now?
Comp ?
Are there credit risk analyst at boutiques?
Have you seen laterals from BBs hired into your firm or other boutiques at the analyst level? If so, have they been knocked back a year in their career or able to come in at the same level they held at the BB? If not, do you know if your firm would look at a lateral?
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