Investment banking in Boston has separated itself by providing specific value to the targeted customers and by being indispensable with broad industry expertise.
Here are the few key features of the investment banking market in Boston –
- The hub for finance careers: If you’re assuming to complete your education and start a career in financeCareer In FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on., especially investment banking, Boston should be the best target you should have. Boston lies among the top 10 cities in the US to have a lucrative banking career.
- Huge volume in transactions: Boston is the dreamland for top asset management companies. The top two asset management companiesAsset Management CompaniesAsset Management Company is a company that takes the financial assets of a person, company or another asset management company (generally this will be high net worth individuals) and use the assets to invest in companies that use those as a operational investment, financial investment or any other investment in order to grow the investment. manage over $2.5 trillion worth of assets and investments in Boston. That’s why Boston is often called the financial district.
- Birthplace of the mutual fund industry: Another feather on the hat is the mutual fund industry in Boston. It is said that Boston is the birthplace of the mutual fund industry. Plus the city is so well-structured that it is greatly suited for finance professionals to live, learn, and reach out to any thought-leader and influencer.
As you can guess, the investment banks in Boston offer a plethora of customized services to its customers.
Let’s have a look at the top investment banking services these banks offer –
- Sell-side advisory: Since many of the investment banks focus on the middle market, one of the services that stand out is sell-side advisory. These banks in Boston take a focused look at the market and offer customized value to their clients. From understanding the requirements of the clients to offering indicative valuation and helping clients realizing the options for leverage are the key strengths of the investment banks.
- Capital Raising: These investment banks help companies raise capital. The capital can be in any form of debt, e.g. senior debt, private equity, mezzanine debtMezzanine DebtMezzanine financing is a type of financing that combines the characteristics of debt and equity financing by granting lenders the right to convert their loan into equity in the event of a default (only after other senior debts are paid off)., management buyoutsManagement BuyoutsA management buyout (MBO) is a type of acquisition where the management of the company acquires the ownership of the business by increasing their equity stake or by purchasing assets and liabilities with the objective of leveraging their expertise to grow the company and drive it forward using own resources., etc.
- Strategic Advisory: As the investment banks are focusing solely on the requirements of the clients, they offer several services in regards to providing strategic alternatives, capacity analysis of debt, analyzing liquidityLiquidityLiquidity shows the ease of converting the assets or the securities of the company into the cash. Liquidity is the ability of the firm to pay off the current liabilities with the current assets it possesses. options, finding out the strategic framework for maximization of shareholders’ value.
- M&A Advisory: The investment banks specialize in offering M&A advisory to their esteemed clients. From an acquisitionAn AcquisitionAn acquisition is defined as the act of taking over or gaining control of all or most of another entity's stocks by purchasing at least fifty percent of the target company's stock and other corporate assets. search to doing the due diligence to executing the valuation analysis, a lot goes into the M&A advisory.
List of Top Investment Banks in Boston
Here are the top investment banks in the financial hub, Boston –
- Provident Healthcare Partners: It is one of the fastest and rapidly growing boutique investment banks in Boston. The main focus of this investment bank is on healthcare industries.
- Lexbridge International: The primary focus of this investment bank is on mergers and acquisitions advisory.
- Capstone Partners: Capstone Partners cater to the needs of the middle market business owners. This bank serves the corporate finance requirements of the company owners.
- Consilium Partners LLC: This investment bank was established in the year 2000. The main focus of this bank in Boston is to providing mergers and acquisition advisory and capital raising opportunities to the emerging and middle markets.
- MHT Partners: This is another top-notch investment banking firm situated in Boston. The intensity and the level of focus they bring in every transaction are unparalleled.
- Tully & Holland, Inc.: Tully & Holland, Inc. is one of the top-tier investment banks in Boston. Their main focus is on the financial advisory that caters to the consumer sector.
- Lockebridge, LLC: The main focus of this top-notch investment bank is providing seasoned domestic and international advisory to the business owners of the lower middle market.
Investment Bank Recruitment Process in Boston
Since Boston is considered as the financial hub, the recruitment process is also very dynamic and varies as per the investment bank’s value-system and focus of work.
Typical recruitment process in Boston is as follows –
- Top-notch institute is preferred: As you can expect if you have studied in top-notch institutes in the US or in the world, you will get easy access to the investment banking market in the Boston area.
- Relevant experience is encouraged: Along with that, you should have relevant experience. The ideal way to deal with this is to do a couple of internships in the investment banking domain after completing your education so that you can show forth the relevant experience and the learning curve you have.
- A lot depends on the recommendation: Since the whole financial industry is closely knitted, if you are recommended by a top-notch executive or a partner of an investment bank, you’ll be given preference over others.
- The candidate needs to gel well with the team: A lot of value is given on the dream-team along with the individual contribution. That’s why if you have a great education, great experience, but you fail to gel well with the existing team, you won’t be the right fit for the bank. A lot also depends on how you approach the new environment and other team members in the investment bank.
A lot of emphasis is given on the culture of the investment banks. Here are the key features of the typical culture of investment banks in Boston –
- Small teams: Investment banks deliberately encourage building smaller teams to reduce friction and to increase accessibility. As a result, the team works as a unit and achieves the most cherished dreams of the respective clients of the banks.
- Open access to senior partners: If you, as a newcomer wants to know something that only a senior partner can answer, you’re more than welcome to ask him/her in most of the investment banking firms in Boston.
- Cross-border deals: Teams at the investment banks are encouraged to work more on cross-border deals. It increases the skill-set and also helps gel with all kinds of people.
- Customer-focus: Almost all the investment banks in Boston have an unrelenting passion and intensity to fulfill the desires of their clients and most of the banks relentlessly adhere to this sort of customer-centricity.
Investment Banking Salaries in Boston
As mentioned by Zip Recruiter, the average salary of investment banking analystsInvestment Banking AnalystsInvestment Banking Analyst works with investment banking team and expertise in the area of Accounting, Financial Modeling, Project financing, Project Valuation, and Financial statement Analysis. These analyst has deep knowledge in Excel and they are good at VBA to analyze the market data and financial modeling. The analytic work consists of building a financial model for different projects like Infrastructure projects (i.e. Power projects, real estate, etc.). in Boston is $86,227 per year which is by no means a small amount.
If you would like to leave a lucrative career in investment bankingCareer In Investment BankingAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. due to havoc stress or unfulfillment, you can choose to work in private equity or as a consultant.
This has been a guide to Investment banking in Boston. Here we discuss the Investment banking market in Boston, Top Investment Banks along with their culture, recruitment process, salaries offered, and exit opportunities. You may learn more about Investment Banking from the following articles –