Could an elite boutique investment banking firm be your best career move? In recent years, we have seen analysts saying they would reject a bulge bracket offer to take one from top elite boutiques like Centerview, Lazard, and Evercore.
But is that a wise move? Read on to learn more about elite boutiques including their characteristics, top firms, and preparation tips to help you decide for yourself.
Elite boutique firms are a specialized type of investment banks that focus mainly on mergers and acquisitions (M&A) and restructuring. They come right after bulge bracket banks in the investment banking prestige hierarchy. So, you’ll often see them working on similar types and sizes of M&A and restructuring deals as these larger banks.
But elite boutiques are smaller and don’t offer such a big variety of financial services like the bulge bracket investment banking firms. Instead of handling all areas of investment banking like equity capital markets or leveraged finance, they focus on high-value deals within their areas of expertise.
The term "elite" shows their superior place or prestige compared to general boutique firms. You might also hear them referred to as non-full-service firms or independent investment banks.
Just like anything grouped together, the elite boutique firms in investment banking share some characteristics. The banks that qualify as elite boutique firms specialize in specific sectors or services, are smaller than bulge bracket banks, have limited balance sheets, work on some high-profile deals, and tend to pay higher salaries than larger IB firms.
Below is a detailed overview of what defines elite boutiques and their characteristics.
Specialization
Elite boutiques in investment banking majorly work on M&A and restructuring. Then some of the firms narrow down their services to specific industries like technology and healthcare. For instance, Qatalyst Partners is known for its services in technology-related M&A.
This specialization allows elite boutiques to develop deep expertise and build strong reputations for high-quality advisory services. It also enables them to compete with larger firms on high-profile deals often valued at over $1 billion.
Their specialization is what differentiates elite boutique firms from middle-market investment banks like Jefferies, Harris Williams, Houlihan Lokey, William Blair, and Piper Sandler. The mid market banks serve a more diverse client base and offer a broader range of services.
Global Presence
Generally speaking, elite boutique investment banks have offices in major financial hubs around the world, including New York, London, and Hong Kong. However, their presence and influence can vary by firm and region.
For example, Centerview, which is one of the top independent investment banking firms, has a more limited international footprint compared to Lazard or Evercore. It's mostly strong within the U.S., but trying to expand its European presence.
The global presence also differentiates elite boutiques from regional investment banks that work within specific geographic areas and serve primarily local businesses.
Size and Structure
Elite boutique investment banking firms have fewer employees and a smaller corporate structure compared to bulge bracket banks. For instance, Lazard has about 3,000 employees globally and Evercore has around 2,200. That's quite a small number compared to larger banks like Goldman Sachs which has about 45,300 employees worldwide.
The smaller corporate structure means more responsibilities for junior bankers compared to their peers in larger firms, and a less hierarchical culture.
Limited Balance Sheets
Most elite boutique investment banking firms don't have large amounts of capital or assets on hand to lend money or finance huge transactions. So, they're less likely to provide financing for things like IPOs or large acquisitions.
Since their lending abilities are limited, elite boutiques rely on their expertise and strategic advice to win clients. Then they collaborate with bulge brackets that provide the necessary financing. So, you will see some deals where an elite boutique firm is listed as an advisor while a bulge bracket bank is the underwriter.
High-Profile Transactions
Elite boutiques often advise on high-value deals worth anywhere from $1 billion to multiple billions. Those are similar deal sizes to what bulge bracket investment banking firms work on.
The reputation of elite boutiques for high-quality advisory services is often what makes them get deals that non-elite boutique investment banking firms don't.
Compensation
The top elite boutique investment banking firms like Centerview, Lazard and Evercore tend to pay analysts and associates more than bulge bracket banks. Since these banks have a smaller corporate structure and teams, they retain a larger share of deal fees. That's why they're able to pay very competitive packages.
The best elite boutique investment banking firms that consistently rank in the top 10 list in M&A league tables are Centerview, Evercore, and Lazard. Other well-known elite boutiques include PJT Partners, Moelis & Company, Qatalyst Partners, Greenhill & Co., Perella Weinberg Partners, Rothschild, and Guggenheim Partners.
Below is a brief overview of each firm to help you understand them better. We've organized the list in alphabetical order, not ranking!
1. Centerview Partners
Centerview Partners is well-known for being among the highest-paying investment banks. It advises on M&A, restructurings, valuation, and capital structure. The operations are primarily in North America and Europe but the firm has a global reach.
It also has a strong deal flow, excellent analyst development program, and high-profile M&A deals. Some of the biggest transactions of Centerview Partners include:
2. Evercore
Getting into evercore can be hard because it primarily recruits from top universities, often referred to as "target schools." But the firm offers good exposure to the investment banking industry as it specializes in M&A, strategic advisory, and capital raising.
Evercore ranks highly among boutique banks, often competing closely with Lazard and Centerview for top positions in M&A advisory. It also features in the top 10 largest firms globally by advisory fees. Like Centerview, Evercore mostly operates in the U.S. and Europe.
3. Lazard
Lazard is one of the most prestigious elite boutique investment banks that often rank in the top 10 for M&A deals. Both M&A and restructuring groups at Lazard are among the best on Wall Street. Besides the two areas, the company also offers asset management services.
Lazard has a strong presence in major financial centers around the world, with about 3,000 employees. In terms of industries, Lazard works across different sectors including financial services, consumer goods, and energy.
4. Greenhill & Co.
Greenhill & Co is good at providing financial advice on mergers, acquisitions, restructurings, financings and capital advisory. It has had a good run as an elite boutique investment bank for years. However, the company has experienced a noticeable decline in its performance and reputation in recent years. This is marked by a drop in deal volume and league table rankings.
In 2023, Mizuho acquired Greenhill for $550 million. The firm will continue to operate under the Greenhill brand as part of Mizuho's investment banking division.
5. Guggenheim Partners
Headquartered in New York City and Chicago, Guggenheim Partners is an elite boutique firm with an investment banking and capital markets division called Guggenheim Securities. The company has over 2,300 professionals in various offices worldwide.
Guggenheim partners specializes in M&A advisory, capital markets advisory, and restructuring. It’s well-regarded especially in healthcare, technology, and media sectors.
6. Moelis & Company
Moelis is one of the most well-known elite boutique investment banks. Like most of the elite boutiques, Moelis was founded by a former bulge bracket bank employee. In particular, Ken Moelis was a former President of UBS investment bank.
Moelis is prestigious and often mentioned alongside PJT and Lazard. Its areas of service include restructuring and M&A advisory. In terms of industries, Moelis works across multiple sectors, including real estate, healthcare, and technology.
7. Perella Weinberg Partners
PWP is among the most prestigious elite boutique investment banking firms with a strong client base among Fortune 500 companies. It has advised on high-profile deals for clients like T-Mobile, PayPal, and Kraft Heinz.
Perella Weinberg Partners is headquartered in New York City and has approximately 700 employees. The company is strong in sectors like energy and industrials.
8. PJT Partners
Another elite boutique investment banking firm that competes with banks like Evercore and Lazard for top-tier deals is PJT Partners.
PJT Partners was created in 2015 when Blackstone, a large investment firm, decided to separate its financial advisory services into a new independent company. They combined those services with Paul J. Taubman’s PJT Capital to form PJT Partners.
After this merger, PJT Partners became an independent investment banking company, while Blackstone continues to operate as a separate entity focused on asset management and investment services. PJT is now known for its strong deal flow, best-in-class restructuring group, and top-notch services in M&A, and shareholder advisory as well.
9. Qatalyst Partners
This is one of the newest elite boutique investment banking firms that achieved the status quickly because of the founder’s reputation. Frank Quattrone and two of his colleagues at Credit Suisse established Qatalyst Partners in 2008. Based in San Francisco, with a focus on the U.S. tech market.
It’s a prestigious San Francisco-based boutique firm that is known for its focus on high-profile technology deals in Silicon Valley. Some of the notable Qatalyst Partners’ clients include:
NetSuite on its $9.4 billion sale to Oracle.
10. Rothschilds
Rothschild & Co. was established in the 1760s by Mayer Amschel Rothschild in Frankfurt, Germany. This marked the beginning of what would become one of the most influential banking dynasties in history.
Rothschild & Co. is renowned for its prestigious reputation in Europe, especially in mergers and acquisitions. In the region, it is often compared to top firms like Goldman Sachs, and is considered a top advisor for high-profile deals.
Rothschild's reputation also comes from its deep expertise, historical significance in banking, and a strong track record of successful transactions.
To choose the right elite boutique investment banking firm to work for, consider the bank's track record, specialization, culture, exit opportunities, compensation, geographic presence, and personal fit.
Here's more detailed information to help guide your decision:
Firm Reputation and Track Record
Research the firm's history and reputation in the industry. Look for firms that consistently rank highly in M&A advisory and have a strong track record of successful deals. For instance, firms like Evercore, Lazard, and Centerview often gain recognition for their consistent performance in this area.
Specialization and Services Offered
Different firms may specialize in various sectors or types of transactions. For example, Rothschild is known for its strength in Europe, while Guggenheim has a strong focus on healthcare and technology. Determine which sectors interest you and align with your career goals.
Culture and Work Environment
The culture at an investment bank will have an impact on your work experience. Elite boutiques often have a more collaborative environment and better mentorship opportunities. But research employee reviews and reach out to current or former employees to get insider insights into the firm's culture.
Deal Size and Complexity
Consider the types of deals the firm handles. Elite boutiques often work on large, complex transactions similar to those at bulge bracket banks, but with smaller teams. If you prefer a hands-on role with more responsibility, look for firms that emphasize smaller deal teams.
Exit Opportunities
Most people who join elite boutiques plan to work there longer, but if that's not in your plans, evaluate the exit opportunities available to analysts and associates at the firm. Investment bankers often transition to private equity and hedge funds. So, research where alumni from the firm have moved on to after their tenure.
Compensation and Benefits
While compensation can vary, elite boutiques often offer competitive salaries and bonuses. Look for a firm with compensation packages that align with your financial goals.
👉 Check out our article on salaries in investment banking!
Geographic Presence
Consider the firm's geographic footprint. Some firms may have a strong presence in specific regions, which can affect your exposure to certain markets and clients. Most elite boutiques have a strong presence in the Americas compared to other regions.
For more information on why consulting landscapes can differ worldwide and a general overview, you can refer to the article on top investment banks worldwide.
Here, you can start your deep dive into other regions and markets:
👉 Top Investment Banks in Germany
👉 Top Investment Banks in the UK
👉 Top Investment Banks in the USA
Personal Fit
Also assess how well you fit with the firm's values and mission. This includes considering the firm's approach to client relationships, teamwork, and overall business philosophy. A good personal fit can enhance your job satisfaction and career progression.
If you seriously want to start your finance career in an elite boutique firm, research the bank thoroughly including its culture, get ready for fit assessments, practice with peers, and consider working with finance interview coaches.
Below are more details on how to prepare effectively.
Understand the Firm and Its Culture
Familiarize yourself with the firm’s history, values, and recent deals. This will help you tailor your responses during the interview.
Once you understand the firm inside out, you will be ready to discuss how your values align with the firm’s culture and how you can contribute to it.
Prepare for Behavioral or Fit Questions
You can expect behavioral or personal fit assessment questions at almost any investment banking interview. So, prepare for questions about your strengths, weaknesses, and experiences working in teams.
In your preparation, you can think of a few short stories that demonstrate your leadership, problem-solving abilities, and resilience. For weaknesses, choose something genuine but not detrimental, and discuss how you are actively working to improve it.
The common fit/behavioral questions include: "Tell me about yourself" or "Walk me through your resume." Use the STAR (Situation, Task, Action, Result) method to structure your responses, and ensure you present your skills and achievements clearly.
Conduct Mock Interviews
Don't just practice alone or with your camera. Instead, do mock interviews with peers or experts. It will help you refine your answers, improve your delivery, and build confidence. During the mock interview sessions, work on both behavioral and technical questions.
Work with Expert Coaches
Who can give you better feedback than the experts? They already know what interviewers look for and will help you work on the weak areas till you're confident and ready for the big day. Given how hard it is to get into the top elite boutique firms, paying an expert coach is a worthwhile investment in your finance career.
👉 Find your perfect coach – discover our wide selection of experienced coaches ready to support you!
