What is the difference between a bulge bracket and an elite boutique?

Bulge brackets are the largest global banks, operating in all regions and offering all services, from M&A to equity and debt, plus sales and trading, research and wealth management. Elite boutiques mostly focus on M&A advisory and restructuring, but often work on the same deals the bulge brackets advise on.

Which banks are elite boutiques?

Centerview, Evercore, Greenhill, Guggenheim, Lazard, Moelis, Perella Weinberg, PJT Partners, Qatalyst, and Rothschild (only in Europe).

Is it better to start at a bulge bracket or an elite boutique?

It depends on what you want. A BB gives you a bigger alumni network, larger deals, a larger cohort and an easier internal switch if you don't enjoy M&A. An EB generally gives you more responsibility, better culture, strong private equity and hedge fund exits, and higher bonuses.

Types of investment banks: bulge brackets vs elite boutiques

Q: Are elite boutiques as prestigious in the UK as in the US?

Not quite. If you read online forums and rankings, the prestige of EBs is generally higher in the US than in the UK (as of 2020), and their deal sizes are more comparable to middle-market banks.

Bank types

Bulge Bracket Investment Banks (BBs): The largest multinational investment banks, typically offering a range of services. JP Morgan, Goldman Sachs, and Morgan Stanley; Bank of America Merrill Lynch and Citi; Credit Suisse, Barclays and UBS.
In-Between-a-Banks (IBABs): A cultural mix between Bulge Bracket and Middle Market. Wells Fargo, RBC, and many European, Asian, and Canadian banks, such as HSBC, BNP Paribas, Mizuho, Nomura, BMO, CITIC etc.
Elite Boutique Investment Banks (EBs): Non-full-service firms focusing on M&A advisory or restructuring that advise on the same types and sizes of deals as Bulge Brackets. Centerview, Evercore, Greenhill, Guggenheim, Lazard, Moelis, Perella Weinberg, PJT Partners (formerly Blackstone), Qatalyst, and Rothschild (only in Europe).
Up-and-Coming Elite Boutique Investment Banks (UCEBs): Deals aren't quite as big yet, but getting there. LionTree Advisors, Zaoui & Co., Robey Warshaw, Lakeside Capital Advisers, Dyal Co, and M. Klein & Co.
Middle Market Banks (MMs): Deal sizes generally range from $10M to $500M, and they generally work with relatively small, private, local firms. Baird, Brown Gibbons Lang & Company, Cowen, Harris Williams, Houlihan Lokey, Janney, Jefferies, JMP, Lincoln International, Macquarie, Needham, Oppenheimer, Piper Sandler, PJ Solomon, Raymond James, Stephens, Stifel, Truist, Wedbush, and William Blair.
Industry-Specific Boutiques (ISBs): Small banks that operate only in a specific industry. SVB Leerink (Healthcare), Ziegler (Healthcare, Senior Living, and Education), FT Partners (Fintech), Allen & Co. (TMT), Seabury (Transportation/Maritime/Aerospace & Defence), Telsey Advisory Group (Consumer/Retail), etc.
Regional Boutique Banks (RBs): If a bank operates in only 1–2 locations or smaller non-financial centres and works on very small deals, it's in this category.

Source: Mergers & Inquisitions

Bulge brackets and elite boutiques

The most competitive investment banking roles are generally at Bulge Brackets (BBs) and Elite Boutiques (EBs). Focusing on these two categories, let's explore the differences between them.

BBs

These are the largest global banks that operate in all regions and offer all services (M&A, equity, debt, and others) to clients.
They also have sales & trading, research, wealth management, and all the other financial services.

EBs

These firms, with a few exceptions, focus on M&A advisory and restructuring rather than debt and equity, and they often work on the same deals that the bulge brackets advise on.
Many analysts from elite boutiques exit into the largest private equity funds and hedge funds, and the success percentage tends to be high simply because there are fewer applicants.

BBs vs EBs

Why choose a BB

The alumni network has depth and breadth.
The average deal is larger than at an EB.
Your cohort will be larger, potentially making your internship or graduate programme more social.
Since BBs offer a huge range of services, it's easier to switch to a different job function internally if you decide you don't enjoy M&A.
There's more opportunity to specialise within an industry or sector.
The experience at an EB is more variable: there are smaller teams at an EB, so it's more team and office dependent.
EBs are not as well known outside of finance, so your exit opportunities to normal companies, startups, government roles, etc. will be reduced.

Why choose an EB

Better, more interesting deal experience: Since deal teams are smaller, you'll have more responsibilities and complete more intellectually stimulating technical work over administrative work.
The percentage of time spent on deal work vs marketing and pitching work is higher than at the average BB.
Better culture: While hours and work/life balance are still pretty poor, you're more likely to be treated like a human than a cog in the machine.
Great finance exit opportunities: Recruiting for private equity and hedge fund roles is arguably easier from an EB since your seniors are more likely to bat for you and you'll have better technical skills than other IBs.
Higher bonuses: If, despite all of my other reasons for you, your main motivation for IB is still money, EB bonuses are generally higher than for BBs.
A smaller, more selective cohort hired for pure intellect and cultural fit means that you're more likely to be surrounded by lots of very interesting and talented people and, after all, you're the average of the five people you spend the most time with (and in banking, that is your colleagues).

Do note that if you're reading online forums (e.g. Wall Street Oasis) and rankings, the prestige of EBs is generally higher in the US than in the UK (as of 2020), and deal sizes of EBs are more comparable to middle-market investment banks.

Bulge brackets and elite boutiques both screen CVs hard. The CV review scores yours against what banks look for.

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The different types of investment banks