disadvantages of botiques

So, not taking the prestige-factor into account, what are the disadvantages of botiques? Are the salaries much lower (at the analyst level), or only slightly? Would it be very difficult to get into a top 10 business school after doing an analyst program at a botique (with an undergrad degree from a top 20 school)?

From what I've been hearing (which may be wrong) it seems that the only major difference, at the analyst level, between working at a botique vs. bb is prestige and that the salary differences are trivial. I guess basically I'm trying to figure out whether or not it would be a good idea to go into ibanking even though at this point I think a job at a BB is a longshot. Would I be better off doing a few years at a place like Rutberg and then goign to business school or working for an engineering company and then going to business school (I have a 3.3/3.4 gpa in electrical engineering and economics at a top 20 school).

Thanks in advance!

 

well salaries are about 20% percent lower when it comes to bonus from what people said...but you also have to take into consideration that a lot of people got 80K in bonuses this year....so thats 16 extra thousand that you won't see.

 

it's very hard to generalize, but the main difference is that exit opps tend to be better at larger institutions (if your interviewer has never heard of the place you worked at, you're at a disadvantage). Some boutiques pay more than big banks and are very well known. Big banks also allow for lateral movement. Since boutique tend to focus on a particular niche, there's nowhere to go if you don't like that niche. If you want to do banking, and don't get a job at a big bank, go for a boutique for sure. You may end up loving it. But if you want to do engineering, that's what you should do.

 

no exit opp after 2 years in banking will be "bad" in the strict sense of the word.

but "bad" is relative...to a Harvard grad and GS analyst, "bad" may be a small-niche PE shop (with KKR being the only "good" exit opp).

others may think KKR is a "bad" exit opp, cause it eats up your life for another few years.

it all depends on what you want to do. if you are looking big name PE shop, its a heck of a lot easier through a BB

 
Best Response
wannabebanker1352:
Would I be better off doing a few years at a place like Rutberg and then goign to business school or working for an engineering company and then going to business school (I have a 3.3/3.4 gpa in electrical engineering and economics at a top 20 school).

Thanks in advance!

Why would you want to at Rutberg? Jesus Christ. That has got to be the shittiest investment bank west of the Mississippi. Everything wrong goes on there from what I hear.

To answer your question, do a boutique if you can't get in anywhere else then lateral the heck out to a good place at minimum like Wachoiva or Jefferies, both of which I truly respect.

 

dude, your gpa isn't terrible, considering you're studying EE and Econ, so wtf are you thinking about Rutberg? I mean think about it, if someone were to every say, "Hey, where do you work?", would you honestly have the balls (and lack of dignity) to answer with, "Rutberg"? I'd rather get recircumsized than be an "analyst" at an "investment bank" called "Rutberg".

Moral: Don't ruin your life, pal.

 
LB Banker:
dude, your gpa isn't terrible, considering you're studying EE and Econ, so wtf are you thinking about Rutberg? I mean think about it, if someone were to every say, "Hey, where do you work?", would you honestly have the balls (and lack of dignity) to answer with, "Rutberg"? I'd rather get recircumsized than be an "analyst" at an "investment bank" called "Rutberg".

Moral: Don't ruin your life, pal.

Hilarous. I cringe when I hear investment banks with only one name and Company (e.g. "XXX & Co."). LB, have you heard of Rutberg?

On a serious note, you're fine. Just hit the pavement and knock on as many doors. With your EE try a tech or healthcare group. When I was at my BB we loved Berkeley kids with EE degrees in the tech group.

 

from what i heard from my friends, boutique is a hit and miss. you can get a great boss who like you and give you real work or you could do nothing for a while. You do not get the structure or the training you get at a BB. Also the money you get to play with or the deal you get to work on is much smaller. Personally starting new, i prefer BB and the structure it offers. once when you know the job or feel like you are the choosen one go join a boutique or even better... start your own!

 

These can vary considerably depending on the firm. But if you're thinking about going boutique they're definitely worth researching: 1. Training may be less structured 2. More responsibility without the requisite job title(s) 3. High level of accountability (so don't screw up) 4. Pay may be less than BB's over time 5. Fewer opps for advancement (really depends on firm) 6. Exit opps may be limited

 

Vault guide to top 50 banking employers, under Evercore (p. 184).

--

“Evercore pays top of the Street,” asserts one analyst. One first-year analyst reports “$70,000 as a first-year base salary” along with a “$15,000 signing bonus -in all, in my first year out of college, I expect to earn well over $250,000.”

--

hahahaha, i guess it was a good year!? lol

-- Support WSO.com and visit these links! Financial Modeling Training Guide to Finance Interviews
 

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