Boutique investment bank is a small firm providing services of investment banking. Boutique investment banks usually provides limited services such as bond trading, assisting in technical analysis and program trading, providing valuable advices for mergers, acquisitions and buyouts etc. They also offer research aimed at investment banking and asset and wealth management. Previously such services were confined to large investment bankers only.
Growth of Boutique Investment Banks:
Boutique investment banks focus principally on the technological, macroeconomic and cultural factors that impact key growth verticals. The particular sectors that attract their attention are various aspects of technology such as software, semiconductors, media, Internet, consumer service, business services, greentech and emerging technologies and various aspects of health care and life sciences. The excellence of boutique investment banks are propelled by the power of growth, focus and deep domain expertise. They try their best to bring in the highest level of personalized service to the clients. This point of view is adopted because they try to be an essential partner rather than being a mere advisor.
Services offered by Boutique investment banks:
Investment Banking- Boutique investment banks provide public equity underwriting, merger and acquisition and useful advisory services. It also provides assistance in the form of a private equity agency for public or private organizations. Some boutique investment banks have created real-time, dynamic exchange with bloggers to help their clients make money. The bloggers are created from the universe of business, technology and investing.
Institutional Brokerage- With extensive research and deep domain expertise in focus sectors, institutional sales and trading capabilities are a major asset for boutique investment banks. Firm focus and momentum is an additional advantage for attaining this.
Wealth Management- This part of boutique investment banks serve the needs of HNWI(high net-worth individuals), partnerships and non-profit organizations. High level of client service in terms of providing valuable investment decisions and guiding the investor to make money has helped the boutique investment banks provide differentiated client-specific solutions.
Care to be exercised before getting into business with a boutique investment bank:
It is of immense importance that the boutique investment banker has a good track record and has a good reputation among investment bankers.
Boutique investment banks serve to meet mostly long term needs. So one should not get impatient due to a slight mismatch with suggestions.
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Non-Executive Chairman of Morgan Stanley Asia. Lecturer at Yale University's School of Management and Jackson Institute for Global Affairs. Author of "The Next Asia".
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Vice President and Director of the Global Economy and Development Program at the Brookings Institution. Former Turkish Minister of State for Economic Affairs. Head of the United Nations Development Program (UNDP) from 2005-2009.