December 1, 2023

Investment Banking

Let Your Investment Banking Do The Walking

A young banker sounds off on why a boutique shop is better than the bulge bracket

Hello! It’s Dan DeFrancesco checking in from NYC.

Today we’ve got stories on what bonuses on Wall Street are set to be (hint: not good), how VCs are feeling about their crypto bets, and tips for standing up a freelancing gig that could earn you more than $200,000 a year.

But first, bigger isn’t always better.

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Charging Bull Wall Street kid

Charging Bull Wall Street kid

Richard Drew/AP

1. It’s not the size of the dog in the fight, but the size of the fight in the dog 

When you think of investment banking, a handful of names probably come to mind: Goldman Sachs, Morgan Stanley, JPMorgan.

While those massive banks play a crucial role in dealmaking, they’re not alone. Boutique investment banks might lack the name-brand recognition of their larger peers, but they also get their fair share of business.

Younger bankers also think they’re a better place to work, according to a recent survey covered by Insider.

In an effort to understand what’s so enticing about working at a smaller shop, Insider’s Emmalyse Brownstein interviewed a first-year investment-banking analyst at an elite boutique firm.

Emmalyse’s story — which is written from the perspective of the banker — is a fascinating read on what matters, and doesn’t, to young bankers early in their careers.

And before you even say it, it’s not just about the comp. While it’s true smaller banks typically pay more than their larger counterparts, that’s not this banker’s main motivating factor.

I don’t find it too surprising this generation might gravitate toward a smaller, more hands-on type investment bank. For all the prestige that comes with a business card from a top-tier bank, it’s also accompanied with plenty of headaches.

Big banks, like most large organizations, are full of corporate politics one needs to navigate. Rising to the top isn’t always about being the best at your job. More so, it’s about schmoozing the right people and being patient enough to wait your turn.

For many young people, that’s not something they’re willing to do. It’s a generation built on instant gratification that wants to get into the thick of it immediately. Naturally, working at a boutique ticks that box in a way a large bank can’t.

Click here to read this first-person perspective on what it’s like to be a first-year investment-banking analyst at a boutique bank.

In other news:

jeff bezos lauren sanchez

jeff bezos lauren sanchez

Jeff Bezos and Lauren Sánchez.Axelle/Bauer-Griffin/FilmMagic

2. Wall Street bonuses are set to be really bad. Hold off on shelling out a down payment on that new beach house. Check out how bad it’s set to be, and who is going to see their bonuses shrink the most.

3. FTX and SBF are getting the Michael Lewis treatment. The author of “The Big Short” and “Liar’s Poker” has been embedded with Sam Bankman-Fried for the past six months. Now an agent is already reportedly selling rights to the book even though Lewis hasn’t written a word of it.

4. JPMorgan has benefited from sitting on the sidelines. The bank avoided lending to many of the buyout deals that are shaping up to be big losers for lenders, The Wall Street Journal reports.

5. Jeff Bezos said he plans to give away most of his money. Fighting the climate crisis and helping people who could unify humanity will reportedly be two areas of focus for Bezos, who has an estimated net worth of $124 billion. Perhaps one place to start would be the 10,000 employees in tech and corporate roles at Amazon that will reportedly be laid off. Speaking of which, here is our running list of recent layoffs.

6. How much are college athletes really getting paid? You might be surprised. Lots of attention is given to the six- and seven-figure sponsorship deals big-time football and basketball athletes nab. In reality, most are getting paid a fraction of that. Four athletes break down how much they are pulling in from brand deals.

7. People who got paid to push FTX to their fans are sorry. Finance influencers are issuing mea culpas for having deals and affiliate marketing with the exchange, which has filed for bankruptcy. No word yet on if they plan on returning any of the money they got, though.

8. Here’s what you should, and shouldn’t do, in a layoff memo. Unfortunately, the last few weeks have given us lots of examples of how executives notify their staff they are making cuts. Here’s who got it right, and who missed the mark.

9. This guy made $244,000 freelancing tech gigs. As layoffs ramp up, there might be a big benefit in being your own boss. Here’s how a product designer was able to find work and build up a business. 

10. FTX has forced VCs to face a harsh reality about their crypto bets. It was all fun and games when valuations were seemingly doubling overnight and bitcoin’s value couldn’t stop rising. But FTX’s downfall is forcing some investors to reconsider things. Here’s why there could be “more blows” to come.

Keep updated with the latest business news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief. Listen here.

Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 


Read the original article on Business Insider