Investment Banking Business Model
I understand the EB and BB strategy, with the former just being focused on advisory with the benefit of being independent + no balance sheet, and with the latter being a one-stop-shop for all things finance.
What's the rationale behind boutique banks having an investment banking practice along with an asset management / equity research arm (ex. EVR, GUGG)? What are the synergies with this business, given that there is an information wall between buy vs. sell side activity? Is prestige/brand name the only synergy?
In the old days, things like prime brokerage and services for PE firms were pretty similar to private banking services. The people who were doing lots of trading and lots of buying companies could go through their private banker for such services. These services were often for what we would now call family offices. The modern synergies between those divisions are a little more obvious, but that is one piece of the history of the one stop shop/Private Bank/Prime Services
diversify revenue streams. gorman talks about this a lot at MS and growing their wealth management. same thing at EBs.
Evercore does ECM, and ISI helps them with this. They are no longer an advisory only shop.
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