What's the deal with merchant banks?

Currently a sophomore at a target and really interested in both IB and investing. I have come across firms like Raine, Broadhaven, and incentrum. Can anyone provide insight on these firms? Would any of you take offers from these merchant banks over BBs/EBs?

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Have heard good things about Raine and Incentrum with respect to both their investing and advisory practices. Raine in particular runs a great growth equity strategy through its merchant bank

Haven’t heard too many good things about Broadhaven; networked with an alum there who said the experience is pretty shite (lots of pitching, consistently working till late for deadlines that are weeks away, VPs do the modeling)

If you’re interested in these firms, other solid merchant banks include BDT, Liontree and TPH

To your answer your question about taking an offer from these places over BBs, it really depends on what you’re trying to do; I took an offer from one of the shops above over a couple of BB offers but one might reasonably do the opposite if they aren’t looking to stay in finance/IB in the long run/want larger, broader platforms/care more about branding given that these banks are all pretty small and often narrow their strategies to focus on a specific industry vertical (i.e. TMT for Raine and LT, C&R for BDT, O&G for TPH)

 

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