When MM/Boutique Biggest Rainmaker Leaves -- Does firm poach new one, or is group toast?
Just wondering what happens to group within MM, or boutique, when biggest rainmaker decides to leave. If it was successful group, does firm soldier on by hiring new MDS from other firms? Or does firm that just lost rainmaker usually decide to pivot away from that once-successful group and allow that once-successful group to shrink in importance?
Have seen this happen, big shoes are rarely easy to fill.
Even if there is serious talent that can step up, a rainmakers relationship and track record are hard to replace. The perception is that some of the credibility has walked out the door.
So what is best course of action for junior bankers in this instance -- immediately start networking in preparation for lateraling?
Situational as there are lots of factors to consider, like who are the replacements and how much of a fee hole needs to be filled.. It's not all doom and gloom but there is an impact.
Would you say that situation is different for BB/EBs given they might have a big enough wallet to shop for good MDs around the street?
I would think that MMs also have the resources to "reload."
I guess I just wonder if, when this has happened in the past, if the MM/EB figures "Well, this sector has done really well for us in the past, and we'll just get another big hitter from another shop." Or, since performance was so linked to the one or two key MDs that just left, the firm just figures "Oh, well, there goes our whole C&R practice, guess we'll just focus on our other sectors."
Just a single example, but a couple of years ago JEF lost both their co-heads of ADG (one of whom they themselves poached from GS a few years beforehand) and they essentially poached the whole Wells team to rebuild, which was really solid in ADG. I’d think that most larger firms would try to rebuild a platform after getting looted.
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