FT Partners Has No Money?
Where do these guys get the money to pay an1 salaries at $140k?? Their IB revenue is a fraction of bulge brackets esp if they’re doing mostly cap raises and only a few m&a deals.
Paying their analysts a couple extra thousand dollars isn’t going to hurt their pockets that much, but I’m assuming they had to bump VP+ salaries roughly proportionally.
Has an investment bank ever gone under for paying their employees too much? I just don’t get where they’re getting the funds for these salary bumps.
Really doubt they're paying almost 300k for an1 if they don't have the revenue for it
If what the WSJ article says is true for revenue, they have a high revenue per head, which is probably why they're so sweaty. 600+ mil in revenue in 2021 on ~200 avg employees implies 3 mil per employee. Some quick benchmarks - PWP had 800 mil in 2021 on ~575 avg employees implying 1.4 mil per employee; Moelis had 1541 mil in 2021 on ~1100 avg. employees implying 1.4 mil per employee
What would Qatalyst’s revenue per head be? Their deals are massive and they have very few employees
Moelis has 650 bankers as of Q3-21, not 1100 fwiw
False. Friend in NYC is making close to $260k. They're per capita revenue is greater than Moelis and Perella. And FT only has one partner, so it makes sense.
They charge higher fees on cap raise deals as they can dig deep and tell a story that investors buy. High growth companies go to FT as they usually have crappy finance / accounting teams and they need big valuation. That is why I think FT is unlikely to be considered as an EB ever from the deal size/type end because they lose their edge when dealing with mature companies / valuation.
Much like any other company, don't look only at the macro metrics, but at the per MD and per IBD head count metrics.
If they are doing mostly equity raises + going smaller + have established themselves as the go-to place in the space, they can command a very strong premium in terms of the discounts they get on their offerings.
It’s essentially more base/less bonus. Oldest trick in the book. U really think ftp analysts gonna outearn associate 1s at other shops?
Is this true? I doubt they would not bump their bonuses with their base, otherwise that makes no sense…
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