Bonuses at Regionals in NYC ( Piper Jaffray, FBR, Stifel Nicolaus)

Gallex's picture
Rank: Chimp | banana points 4

Hi,

Current student here. I was hoping people could let me know more about bonuses at regional banks based in NYC like Piper Jaffray, FBR, Stifel Nicolaus or others.

Additionally, I know these banks allow analysts to have more exposure to deals. Although deal flow can be lower and the deals will have lower profiles. As a result, how are exit opps?

Thanks!

Comments (10)

Aug 29, 2014

Stifel bonuses normally in line w/street, or a little lower. Piper and FBR normally a tier below Stifel. Not positive when these guys will hop on the train to bump bases to $85 though. Probably within a year (two tops)

Exit ops are limited. These mid-tier MM shop guys rarely go above lower-tier MM PE, although mid-tier MM PE isn't literally impossible (I think one guy at Stifel went to a ~4bn AUM PE shop in the last 3 years). A fair amount lateral up to BB's, stay on as 3rd years/associates or leave finance after two years.

Deal exposure is definitely a lot higher; on a related note, the deals are often a lot simpler than those you'd see at a BB

A fairly limited amount make it to the buyside in any capacity, partially by choice (comp and lifestyle as a 3rd yr analyst/associate can be better than comp at a tiny boutique buyside shop)

hope this helps.

"Success means having the courage, the determination, and the will to become the person you believe you were meant to be"

Aug 29, 2014

@nontargetPSD92 That's very helpful information, how about places like KBW/ Miller Buckfire that were bought up by Stifel? Is comp / deal exposure in line with Stifel?

Aug 29, 2014

Exit opps are in the eye of the eye of the beholder honestly. You can still make a crap ton of money at MM and lower MM PE firms and generally (I stress generally) have a better lifestyle. I've been in MM to lower MM PE for a while and I'd rather hire people from middle market IB's because they've seen how middle and lower middle market companies operate and have possibly built a network with the people who are in that market. Smaller companies, especially private ones, are run very differently from large public companies so knowing how they work (and it runs the gamut) is extremely helpful when you're investing in them. Not everyone files 10q's and operates like that so having experience with those companies is very important.

As for the OP, personally I have no idea what bonuses are like. One thing to note is that FBR seems to have become a 144a shop, not that there's anything wrong with that. I feel like they used to be more well rounded when it was called Friedman, Billings Ramsey and I don't know when that changed but when I think of FBR I think 144a. I could be wrong though.

Aug 29, 2014

People confuse MM with a ranking when it's really just a focus. Mega PE funds might get the news, but it gets increasingly hard to do these mega deals. You can just churn them out in the MM.

MM=/= B league. It's just industry focus.

As for where people go from MM banks, all depends. MM banks place into MM funds because they have experience with these clients, sponsors and focus area. You get into a good MM fund with carry and you'll be doing just fine.

Honestly, BB guys go MM if they want to leave NYC. Tons of funds in every major non NYC city, but the issue is they aren't mega funds.

Aug 29, 2014

All the post have been super helpful. Thank you very much.
You mention that the bonuses are a tier below street. Is that $10k less? $20k less?

Are guys at these MM shops looking at over $100,000 all in still? Additionally, you mention the 144As. I would assume that such exposure (although limited in scope) is niche and helpful for PE? Or am I way off base?

Also, does 144A activity correlate with higher/lower bonuses?

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Aug 29, 2014

I interned at one of the MM shops originally mentioned and lowest 1st year bonus I heard was 37.5k. So you'll be above 100k easily with the signing bonus.

Aug 29, 2014

NuclearPenguins, but was that Stifel? Because apparently they pay at street while the other two pay below.

Aug 29, 2014

No not Stifel.

Aug 29, 2014

Frankly, who cares. It's all about deal flow and what bucket you're in. I'd focus on location and group fit. This is not useful analysis.

Aug 29, 2014

"Success means having the courage, the determination, and the will to become the person you believe you were meant to be"