Boutique Investment Banking: Who Are the New Players?
With the investment banking model under siege, entrepreneurs see an opportunity to fill a void in sellside service. An oversupply of available talent helps drive the process.
Ziriux and Zagax may sound like the latest pharmaceutical
breakthroughs, but they and other start-up banking boutiques
are springing up from the wreckage of Wall Street, hoping to
cure LatAm clients headaches. Whether emerging from
scratch or partnering up, independent dealmakers are
capitalizing on wholesale condemnation of a model that has
rewarded misguided risk-taking and conflict of interest.
by Dan Shirai
Some have launched pure-play financial advisory boutiques,
sticking with a method that has tended to work for those with a
little gray hair and a long list of loyal contacts. More
ambitious projects involve obtaining banking licenses to set up
full service shops.
Many are sprouting up from collections of bankers turfed out
by Wall Street, who traditionally might have gone to hedge
funds, which themselves are in trouble. In all cases, the
freedom of operating without the burden of existing losses or
government intervention provides an...
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