Houlihan Lokey as a Career Banker
How is HL as a long-term career option? The other advisory-focused MMs (excluding Jefferies, WF, RBC, those with sizable capital markets capabilities) generally do pretty well in terms of bringing up the next generation, and plenty of senior MDs at those shops came up as analysts / associates. Whereas most EBs are pretty bad about internal organic growth since the MDs / Partners tightly gate-keep their relationships, and their coverage is never broad enough where they can give up some smaller accounts. The EB business model incentivizes MDs to focus all of their energy on a number of large accounts that bring in consistent, repeat business, and up-and-coming coverage bankers have to struggle to find their niches downmarket despite mostly working on larger deals their entire career.
I'm sure it is dependent on the group, but overall, how does HL fare as a place to grow into becoming a senior banker? Do MDs generally mentor the next generation and carve out parts of their coverage for up-and-coming VPs / SVPs / Directors when the time comes? Given the amount of volume that HL does and how far it plays up and down the deal value range, there are probably way too many clients for MDs to cover completely. However, HL also seems to be a bunch of loosely-related fiefdoms due to all of their acquisitions that I would imagine the incumbent MDs guard pretty tightly.
How does the dynamic work internally in terms of bringing up the next generation? Is HL a good place for building a career?
bump
Not kidding - absolutely one of the worst banks for it.
Houlihan Lokey right now is disintegrating. They're where Blair was two years ago. They hired a bunch of lateral MDs who haven't brought in a single iota of business, and who have wasted a lot of resources on losing pitches. As a result, the bank is bleeding analysts, associates, and VPs.
During good years, Houlihan takes longer to promote than other banks. You spend 3 years as an analyst. 4-5 years as an associate. 2-4 years as a VP. 2-5 years as a SVP. 2-5 years as a director. By the time you make MD, you might as well quit and start collecting social security.
On top of that, the culture is a mess. I don't know of any MDs who are eager to collaborate. This is a "fuck you, got mine" place.
HL has the prestige of being one of the best banks in the MM by volume, but its only because the bank is a total churn shop. Nobody lasts except for the one big dog at the top in each group, and he's not afraid to stab you in the back if it means his deal gets to close a week early.
This ^^
I used to work in FVA (queue the back office jokes) and our hours were close to IB (regular 2am+ nights). My total comp as an AN1 was 97K in HCOL. What a joke.
A former back-office colleague!! It definitely feels like the experience varies across groups let alone business lines. Know some who sit pretty comfortable and are pleased (enough) with their WLB/comp/career trajectory, and others who are part of groups that lack leadership, and/or performance and get completely wiped out/let go
This. My friend’s experience at HL was nothing short of horrid. People backstabbing each other all the time, seniors not providing guidance and then giving bad reviews as a scare tactic, analysts staying longer than 3 years at analyst because seniors know they are gonna exit so won’t promote them A2A, etc. you get the idea but it’s horrible and HL is where seniors come know they have become MDs elsewhere and have a strong pipeline of LMM deals they can churn out.
This response seems strange. I work at HL and 2 MDs on my team were here since their SA stint around 12 years ago. 2 more SVPs also started as SA/An1. I do see analysts needing to do 3 years but do not see associates doing more than 4-5 years. It is true it is a churn shop but culture (at least in my team) is much better than my friends who work in other banks because they actually hate their lives.
I worked at HL before as an analyst. Left ~5 years ago. I have heard / seen both sides - I think it honestly just depends on group and office with regards to comp and promotions. Some guys have crazy plugs and get favored, other (smart) bankers get shafted.
100% agree. Another issue is there are a lot of senior bankers that became very rich through the IPO and they act like it. Extreme arrogance and total disregard for any sort of upward feedback. HR is completely worthless.
Definitely a bank to avoid if you can.
Have there been any updates since the acquisition of GCA?
GCA people are the best bankers I encountered from HL - obviously had a great culture and were all sharp - hopefully HL doesn't ruin them
Is this still accurate?
why do they have SVPs and Directors? Staff both on teams?
Want to caveat that what’s said above does not apply to RX. HL RX is a phenomenal place to build a career and most MDs started as analysts.
From what I saw, there were a lot of home-grown MDs and other senior bankers that started as analysts. A lot of analysts in my group even elected to stay after their 2-3 years. I’m starting in a smaller office but everyone is pretty cordial with each other and there’s no bad vibes. Although those that were cross-staffed on deals with other offices looked like they wanted to rip their hair out lol.
Thanks, everyone. This is very helpful. A more specific question, how does the Financial Sponsors Group function within HL? Do they own any relationships and source deals, or do the sponsors generally just go to their favorite relevant industry banker, and the Sponsors Group just helps out with buyer outreach on sellsides? I know HL has a LevFin advisory group, but how active are they in conjunction with the Sponsors Group when most deals in the LMM space can get done with just banks and maybe a mix of club deals with private lenders?
Curious as well
I left HL to go to a no name bank (best decision of my life). I wouldn't recommend taking a job at HL unless it's your only option.
So glad I left that sinking ship lol! The worst culture on the street but that $40 meal stipend was pretty GOATed.
Bummer they took away WFH stipend for meals last fall
Anyone else feel like this is actually a cheap AF system? Can only expense if you have an active opportunity AND if an MD’s team expenses hit a certain ratio of closed deal expenses vs. dead deal expenses it gets docked from their pay… doesn’t seem like a real benefit if that’s how it works. Not to mention… employees having to pay out of pocket for stuff like shipping books and getting reimbursed instead of them just covering it.
Lunch stipend still dope tho.
Got to a final round with HL. Weird vibes. Seems to vary by coverage group. Sweatshop hours across the office in Chicago though from what it seemed.
Lots of weird people in the Chicago office... can attest. Just a club of misfits, but most people here are too socially unaware to realize it
Lmao just say you got rejected
HL has some of the worst VPs I've ever worked with. Also probably the most useless HR on the street
I think HR is worthless by design. Some of the MD's have an unusual amount of power at the corporate level - the bank is young enough that these guys literally built their respective groups. They don't have any interest in listening to HR and nobody at corporate is going to make them. Maybe things will shake up with this sexual harassment lawsuit though
Just realized that the standard career progression at HL is 3 years VP -> 3 years SVP -> 2-3 years Director -> MD
That must be the longest path to MD vs. other banks?!?
Is there a difference here between UK and UA? Feel like they’re killing it in the UK MM
They are also completely crushing it in the US MM and UMM space. It just seems that hours are absolutely brutal. But I mean get the deal reps in while you are young right?
Bump
HL stock price hits an all time high every day recently. I think the market likes the bank lol.. compared to GHL…
HL going public basically made the heads care much more about pleasing shareholders instead of its employees
Hourwni hans Loki
Hali Han Loki bank
Banking is a dynamic industry in terms of teams. People burn out and leave very year at every level creating opportunities.
People also get stuck where there are too many people at a level where they have to look elsewhere if they want to be promoted
HL is a good brand that will get you looks to BB/EB shops for lateral opps if you know your stuff and build a good network.
That's kinda insane. didn't Houlihan use to have one of the best cultures on the street?
It’s lowkey
insights on HC team in London
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