A boutique investment bank is a

investment bank Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...

that specializes in at least one aspect of

investment banking Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...

, generally

corporate finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and anal ...

, although some banks strengths are retail in nature, such as Charles Schwab. Of those involved in corporate finance, capital raising,

mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

and

restructuring Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons ...

and

reorganization A corporate action is an event initiated by a public company that brings or could bring an actual change to the securities—equity or debt—issued by the company. Corporate actions are typically agreed upon by a company's board of directors ...

s are their primary activities. Boutique investment banks generally work on smaller deals involving

middle-market companies Authorities provide differing definitions of the middle-market or mid-market companies. While some authorities look to revenue generated by companies to define the middle market, other sources regard either asset size or number of employees as a be ...

, and usually assist on the sell or buy-side in mergers and acquisitions transactions. In addition, they often specialize in certain industries such as media, healthcare, industrials, technology or energy. Some banks may specialize in certain types of transactions, such as capital raising or

, or

and

. Typically, boutique investment may have a limited number of offices and may specialize in certain geographic regions, thus the moniker, 'regional investment bank'. Traditionally, boutique investment banks are specialized in certain fields of corporate finance and thus not full-service. However, the term is often also used for non-bulge bracket full-service investment banks, banks that also are knows as middle-market investment banks.

History

During 2014, ''

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'', and ''

The Economist ''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Econo ...

'' all published favorable articles regarding the growing trend of corporations to hire boutique investment banks. Reasons cited included their absence of conflicts, independence, and skill of one or a relative few individuals. The discrediting of traditionally conflicted Wall Street

firms, especially those listed as full-service or conglomerates on the

list of investment banks The following list catalogues the largest, most profitable, and otherwise notable investment banks. This list of investment banks notes full-service banks, financial conglomerates, independent investment banks, private placement firms and nota ...

, due to their role in the creation or exacerbation of the Great Financial Crisis is cited as a primary reason for the ascendancy of these boutique firms. However, advances in technology which permit the outsourcing of all non-core aspects of the firm have also been cited as a cause of this

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versus Goliath phenomenon. Working at boutique investment banks generally requires working fewer hours than at larger banks, even though the majority of boutiques are founded and led by former partners at large banks. As larger investment banks were hit hard by the

Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...

of the 2000s, many senior bankers left to join boutiques, some of which largely resemble the partnerships that ruled Wall Street in the 1970s and 1980s. Boutique investment banks took a greater share of the M&A and advising market at the same time. Large, prestigious boutique firms include

Evercore Evercore Inc., formerly known as Evercore Partners, is a global independent investment banking advisory firm founded in 1995 by Roger Altman, David Offensend, and Austin Beutner. The firm has advised on over $4.7 trillion of merger, acquisition ...

Lazard Lazard Ltd (formerly known as Lazard Frères & Co.) is a financial advisory and asset management firm that engages in investment banking, asset management and other financial services, primarily with institutional clients. It is the world's la ...

Centerview Partners Centerview Partners is an American independent investment banking firm. Centerview operates primarily as an investment banking advisory firm. Centerview has 60 partners and 300 professionals with expertise across a wide range of industries, ge ...

PJT Partners PJT Partners, Inc. is a global advisory-focused investment bank, founded in October 2015 as part of The Blackstone Group's spin-off of its financial and strategic advisory services businesses. The firm was founded by Paul J Taubman after his 30 ...

and

Moelis & Company Moelis & Company is a global investment bank that provides financial advisory services to corporations, governments, and financial sponsors. The firm advises on strategic decisions such as mergers and acquisitions, recapitalizations and restruc ...

. While these may be full-service and international in scale, they are significantly smaller than and do not offer the breadth of products and services of bulge bracket investment banks.

Services

Boutique investment banks may be engaged in providing one or more of the following services: * Connecting clients, especially with regard to

IPOs In demonology, Ipos is an Earl and powerful Prince of Hell (a Duke to some authors) who has thirty-six legions of demons under his command. He knows and can reveal all things, past, present and future (only the future to some authors, and past ...

or further stock offerings. *

Mergers and Acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

advisory *

Underwriting Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liabilit ...

debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...

and/or

equity securities In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

* Capital raising (e.g.

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

deals; not as common due to small firm size)

Notable boutique investment banks

There are many boutique investment banks, some of which are well known within their field. The following is a partial list of notable boutique investment banks: *

Allen & Company Allen & Company LLC is an American privately held boutique investment bank based at 711 Fifth Avenue, New York. The firm specializes in real estate, technology, media and entertainment. History Founded in 1922 by Charles Robert Allen, Jr., h ...

Berkery, Noyes & Co Berkery, Noyes & Co., LLC is a private middle-market investment bank based in New York City, United States, specializing in mergers and acquisitions advisory and financial consulting services. History In 1980, Joseph W. Berkery founded Berkery A ...

BG Capital BG Capital (established in 2000 as Galt & Taggart Securities and renamed in September 2009) is a full-service investment firm in the Frontier Markets of the former Soviet Union with key operations in Ukraine, Georgia (country), Georgia, and Belaru ...

* C.W. Downer *

Cantor Fitzgerald Cantor Fitzgerald, L.P. is an American financial services firm that was founded in 1945. It specializes in institutional equity, fixed income sales and trading, and serving the middle market with investment banking services, prime brokerage, an ...

* Capstone Partners *

* CSG Partners * Ducera Partners *

Financo Financo, Inc. is a New York-based boutique investment bank focused on the merchandising and retail sector, with offices also in Los Angeles and London. It was founded in 1971 by Gilbert Harrison. About History Financo was founded in 1971 by W ...

* Foros * Gleacher & Company *

Guggenheim Partners Guggenheim Partners is a global investment and advisory financial services firm that engages in investment banking, asset management, capital markets services, and insurance services. Organization The firm is headquartered in New York City an ...

Invesco PowerShares Invesco PowerShares (formerly PowerShares Capital Management) is an American boutique investment management firm based near Chicago which manages a family of exchange-traded funds or ETFs. The company has been part of Invesco, which markets the P ...

* Keefe, Bruyette, & Woods *

Ladenburg Thalmann Ladenburg Thalmann Financial Services is a diversified financial services company with two primary business lines: independent brokerage and advisory and investment banking and capital markets. The company is engaged in investment banking, equit ...

Lincoln International Lincoln International LLC is a multinational independent investment bank and financial services company specializing in advisory services and financings on middle market transactions. The firm works with publicly traded and privately owned com ...

Marathon Capital Marathon Capital is an independent investment bank delivering financial advice to the global energy and infrastructure markets. Marathon Capital specializes in the sale and financing of companies, portfolios and assets within these markets. Mara ...

* Marlin & Associates *

McColl Partners McColl Partners, LLC is an investment bank that provides services to middle-market companies and financial institutions. McColl Partners advises clients in three primary areas: Mergers and Acquisitions (M&A), Private Capital Raises, and Strateg ...

* Miller Buckfire & Co. * Morgan Keegan & Co. * Needham & Co. *

Panmure Gordon Panmure Gordon is a UK based investment bank. It provides a full range of services including investment banking, trading, research and sales with distribution to the UK, Europe and the US. Panmure Gordon has 150 UK listed corporate clients, over 40 ...

* Roth Capital Partners * Stephens, Inc. * Stifel Financial *

Van Lanschot Kempen Van Lanschot Kempen N.V. is a specialised, independent wealth manager that provides private banking, investment management and investment banking services to wealthy individuals and institutions. It is headquartered in 's-Hertogenbosch, the Nether ...

https://www.spglobal.com/marketintelligence/en/news-insights/trending/9njfqznmrj9km5osm_z0uq2 European listed property sector urges more changes to insurer investment rules 23 April 2019 * WR Hambrecht + Co

References

{{DEFAULTSORT:Boutique Investment Bank Investment banking

History

Services

Notable boutique investment banks

See also

References