Capstone Headwaters?

Straafe's picture
Rank: Monkey | 30

Evening Monkeys,

Looking for a little color on Capstone headwaters, specifically the LA team. First look had MDs with strong tract records but I haven't found much else about that. Seem to run pretty lean, decent(?) deal flow.

Looking for someone to hopefully provide insight on comp, exits, quality?

Anything really that's relevant.

Thanks!

Comments (9)

Oct 10, 2019

Bump for morning crowd. Thanks.

Oct 10, 2019

Also interested in both LA and Denver offices

Array

Oct 10, 2019

Considerably below market comp vs. MM/EB/BB (WSO has some good data points). It's a hodge podge of MDs, some good, some terrible, some in between. The firm is far less structured than a MM, meaning the MDs have more autonomy and leeway in terms of how much they bring in, how they operate, where they work (some MDs don't even go into the office), etc.

Apparently has some decent groups (HC services guy seems to be doing well as I acknowledged in another thread), but overall is a notch below Cascadia, D.A. Davidson, etc. which are boutique LMM banks.

Haven't seen anyone from Capstone or Headwaters in PE, but I'm sure there are some, would just be an uphill battle. A few have moved in to Corp Dev or Corp Fin.

    • 1
Oct 11, 2019

Was trying to read into this bank as well. What is all in comp, ballpark? The head of consumer had a decent background which led me to believe they did well, is this wrong to think? Thanks

I spent half my money on gambling, alcohol, and wild women. The other half I wasted.

Oct 11, 2019
CoverageOrBust:

Was trying to read into this bank as well. What is all in comp, ballpark? The head of consumer had a decent background which led me to believe they did well, is this wrong to think? Thanks

All in comp for analyst is probably maxes out around $100-110K. I think the base is around $60K +/- $5K. There are several MDs that have decent backgrounds, but if it operates anything like Headwaters (wasn't familiar w/Capstone), the culture is to stay in your lane and there is no interaction between groups.

The MDs that descended there historically were guys with decent backgrounds that either got let go by better known firms because they weren't able to meet MD revenue goals or chose to leave to a relaxed environment where they could do a deal per year while they fade into retirement.

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Oct 10, 2019

Expanding out to Chicago - The MD there does very well with lower MM industrials / tech services coverage.

Most Helpful
Oct 10, 2019

Had a friend that just summered in the Chicago office who said it was pretty abysmal stuff

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Oct 11, 2019
Androidman123:

Had a friend that just summered in the Chicago office who said it was pretty abysmal stuff

Didn't even know it had a Chicago presence. Was he referring to deal size, deal quality or something else?

Oct 14, 2019
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