Balance Sheet Banks: Experience or Brandname?
Out of curiosity, do people feel what’s being said about some groups at firms like BofA and UBS is generally true for the non-GS, MS, JPM BBs? As someone looking in from the outside, I can't help but feel I’m getting a more proper "analyst experience" at my small boutique. I'm an An2 at a generalist boutique in a tier 1 city (NYC, SF, LA).
I don’t intend to offend anyone, but it’s a thought that’s crossed my mind while preparing to lateral. Maybe as a way to subconsciously give myself some self-confidence.
However, my deal teams run lean, so I’m usually expected to run most of the model and presentation materials with the guidance of an associate/VP. There have been multiple occasions with only one layer between the MD and me. If anyone slacks, it's obvious who and what is disturbing a workstream.
I'll give that we are strictly MM and won't ever have the reps to do a headliner multi-billion deal. However, since we have some MDs from old-guard shops (think Drexel, DLJ, Salomon Bros, First Boston, etc.), I still get to see a fair share of hairy situations.
Maybe it's just coping, but I would love to hear the community's thoughts. I did look up to firms like BofA and UBS when I was recruiting during college.
Based on the most helpful WSO content, your experience at a boutique offers some unique advantages, but the trade-offs compared to non-GS/MS/JPM bulge brackets (like BofA and UBS) are worth considering. Here's a breakdown:
Experience vs. Brand Name:
Deal Quality and Exposure:
Training and Resources:
Exit Opportunities:
Cultural Differences:
Ultimately, whether to prioritize experience or brand name depends on your career goals. If you're looking to lateral, leveraging your strong technical skills and deal experience from the boutique can make you a competitive candidate for BBs or elite boutiques. However, if you're content with the hands-on exposure and culture at your current firm, there's no harm in staying and continuing to build your expertise.
Sources: If smaller banks say they offer juniors more deal exposure, why are bulge bracket positions still more highly regarded?, Investment Banking Analyst: A True Day in the Life, David and Goliath: The Boutique and The Bulge Bracket, David and Goliath: The Boutique and The Bulge Bracket, What is life like at no-Bulge Bracket Investment banks?
What you are recognizing is generally true. While there will always be some deviation from the general trend, this is a big difference between working at a large, institutionalized firm and a smaller one. This is true in most fields. Being a software engineer at Apple is very different to being a software engineer at a seed stage startup in terms of what your actual job tasks are. Being an economics professor at some school where you are the third econ professor in the program is very different than being hired today to be an econ professor at University of Chicago. Doing tax work at a Big Four is very different to doing tax work at a 50-person accounting firm.
But to be clear, it isn't that you are getting a more proper "analyst experience." It is that you will be asked to do a wider range of job tasks than a BB banker. You will generally get a wider experience. However, as you correctly pointed out, there are differences to doing a $100 million or $500 million deal and doing a $14 billion deal. But in terms of skill-development, does getting a wider experience at a "lower level" do more for you then getting a narrower experience at a "higher level?" It really just depends. Some people benefit from the narrower experience at the higher level more. Some people benefit from the broader experience more. It depends on who you are as a person.
For example, Milken likely couldn't have built his empire working at a MS, Salomon, GS, etc. He needed a place like the has-beens at Drexel. Being at the mid-tier shop gave him the space to do the work he did. However, there is a reason why most of those top M&A bankers of that first era were from places like First Boston, MS, and GS. We know the names of Boisi and Wasserstein and Greenhill and Perella.
I wouldn't say that you are coping, but more-so that you aren't fully considering that there are very real, tangible benefits to working at a BB even if you may have more people checking your work and you may be doing more narrow tasks because of how many people are on the deal team at one of these larger banks.
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