Hey there! Sign in to join this conversationNew here? Join for free

Do unknown boutique investment banks pay anywhere near the bulge brackets? Watch

Announcements
    • Thread Starter
    Offline

    1
    ReputationRep:
    Seems like there are loads of small investment banks scattered all over the UK and USA, I'm not talking about Greenhill, Jeffries etc. they obviously pay well, but do the pretty much unknown banks pay salaries + bonuses comparable to the more known IBs?
    Offline

    0
    ReputationRep:
    (Original post by bmqib)
    Seems like there are loads of small investment banks scattered all over the UK and USA, I'm not talking about Greenhill, Jeffries etc. they obviously pay well, but do the pretty much unknown banks pay salaries + bonuses comparable to the more known IBs?
    Do tell...
    Offline

    0
    ReputationRep:
    Yes, small iBanks can pay equal to or more than a big investment bank. However, it can be harder to make money. In investment banks, the front line people - traders, salespeople and corporate finance folk are paid according to how much revenue they bring in for the bank. This is the same no matter what the size of the firm is. With a well-known iBank, money is easy to make. You don't have to work so hard to convince the client. In a smaller shop you do. Everyone knows this so to make themselves more attractive small iBanks usually pay you a much larger percentage of what you earn.

    I almost took a job with a small iBank that was going to commit to paying me 30% of all revenue that I bring in.

    In a large iBank they would never commit to any sort of fixed percentage correlation between what you bring in for the firm and your comp. Typically, the best payers pay you c.5% of what you bring in because they know the money would have been made anyway regardless of who was sat in your desk, the brand sells.

    Hope that helps,
    (The) Girl Banker
    Offline

    2
    ReputationRep:
    (Original post by bmqib)
    Seems like there are loads of small investment banks scattered all over the UK and USA, I'm not talking about Greenhill, Jeffries etc. they obviously pay well, but do the pretty much unknown banks pay salaries + bonuses comparable to the more known IBs?
    Well the solid mid-market ones with a larger franchise, able to operate internationally will pay market rate. The smaller lower mid market or M&A arms of the lower tier banks (e.g. CA CIB or so) ones will likely pay below. Hours will be much better tho.
    Offline

    9
    ReputationRep:
    What happened to freedom of speech?
    Offline

    12
    ReputationRep:
    Depends, those that pay a lot also expect a lot out of you
    Offline

    1
    ReputationRep:
    I don't think career progression is as good, and not to mention exit opps won't be nearly as good.
    Offline

    0
    ReputationRep:
    (Original post by i_hate_teeth)
    What happened to freedom of speech?
    seconded
    Offline

    2
    ReputationRep:
    (Original post by fail@maths)
    I don't think career progression is as good, and not to mention exit opps won't be nearly as good.
    Depends where you want to take your career. Some feed quite well into mid-market PE.
    Offline

    13
    ReputationRep:
    (Original post by girlbanker)
    Yes, small iBanks can pay equal to or more than a big investment bank. However, it can be harder to make money. In investment banks, the front line people - traders, salespeople and corporate finance folk are paid according to how much revenue they bring in for the bank. This is the same no matter what the size of the firm is. With a well-known iBank, money is easy to make. You don't have to work so hard to convince the client. In a smaller shop you do. Everyone knows this so to make themselves more attractive small iBanks usually pay you a much larger percentage of what you earn.

    I almost took a job with a small iBank that was going to commit to paying me 30% of all revenue that I bring in.

    In a large iBank they would never commit to any sort of fixed percentage correlation between what you bring in for the firm and your comp. Typically, the best payers pay you c.5% of what you bring in because they know the money would have been made anyway regardless of who was sat in your desk, the brand sells.

    Hope that helps,
    (The) Girl Banker
    just flat out not true re: percentages in IBD
    Offline

    1
    ReputationRep:
    Base yes. Bonus no
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Should Spain allow Catalonia to declare independence?
    Useful resources

    Articles:

    Guide to investment bankingGuide to consultancy

    Featured recruiter profiles:

    Deutsche Bank logo

    Deutsche Bank is recruiting

    "Thrive in an international banking environment"

    Quick link:

    Unanswered investment banking and consultancy threads

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.