Will "Rising EBs" ever become EBs? Do they even want to become EBs?
So, we all know about the 6 or so EBs that are constantly mentioned on this website. I'm talking about firms like Evercore, Lazard, Moelis, and such.
However, we clearly can't treat all the other boutiques the same. There seems to be a group of boutiques that stand out above others. Some of the names that come to mind are LionTree, Dyal Co., Robey Warshaw, M. Klein, Dean Bradley Osborne, Incentrum, and Zaoui & Co. I'm sure there are others that I'm missing too.
But, my questions are: Do these firms care to expand massively to reach the levels of the so-called EBs? If so, what's holding them back?
I work at an EB myself, so I seem to be a bit out of touch with the mindset of these "rising" boutiques and would appreciate insights into what they're thinking.
First, stop pretending you're an analyst. No analyst would ask this question. It screams prospect Second, if you were actually an analyst, you would know that "Elite Boutique" is not a term used anywhere other than WSO Doesn't matter the quality of the boutique. People refer to them as a boutique so what's the point of this thread?
This is 100000x correct. It’s not like KKR has some checklist to classify “EBs” before they consider talking to them. I have never heard someone say “elite boutique” out loud in real life.
This is just foolish. In the first sentence, I establish the fact that the discussion of EBs is something that takes place on this website. I never suggested we go out on the street and describe firms as EBs or not.
You're totally missing the point. The point is where are they heading? It's not about how they should be classified. It's about if they care to increase their headcount to mimic the success of the likes of Lazard, Moelis, PWP, etc.
DBO was started by senior guys at morgan stanley - head of financial sponsors, vice chair of western advisory, and head of tech m&a. Very strong sponsor relationships on west coast and was focused on tech but has now diversified. They are growing fast...
Incentrum much newer, founded maybe 2/3 yrs back by vice chair of healthcare / life sciences at Morgan Stanley - guy was supposedly behind the massive monsanto bayer deal and ex-TPG / Delta Partners head. Unique model maybe similar to M Klein in that its a merchant bank. seem to be picking up steam with big hires like vicw chair of baml healthcare and some seniors from morgan
This comment is just so unnecessary and unhelpful. I’ve been on the desk for two years and don’t see a problem with it. As the OP responded, he clearly says that we refer to some boutiques as EBs on this website. Not anywhere else. Just this website. Take a chill pill.
Damn this is a good question and I'm genuinely curious. It's honestly too bad that most of the comments above don't answer the question at all.
Interesting discussion from prospective or junior people in the industry....After 50+ replies there still is no answer.
This might be controversial but imo prestige gets diluted the bigger a firm grows. Hell aside from maybe admin staff, these rising boutiques are filled with target school kids. Not so for the EBs. You cant even apply to m klein and dyal if you dont go to its target schools, but anyone can apply and potentially land an offer at the EBs
I worked in IB for two years before moving to the corp dev/corp fin side. When we hire an investment bank, we hire the senior banker, not the bank itself. We do not care about the prestige of GS vs. some boutique you have never heard of; we care about the experience that the MD is bringing to the table. This is why some boutiques like LionTree excel. These boutiques have senior bankers who used to be a global head or something equivalent at a top BB and now they run a boutique...oh, and we work with the senior banker, not an associate or VP, on a daily basis.
It's not about being held back- it's about competing in a different market for different clients. Think a restaurant that seats five tables a day vs. a buffet. It's not that one is better or worse- it's just that they cater to different people (clients).