RPT-M&A boutique hirings may not unseat large top banks

viernes 26 de junio de 2009 08:37 CEST

* Boutiques hope to see market share increase

* Big banks likely to dominate top few M&A rankings

* Moelis plans financial institutions, energy hires

By Paritosh Bansal

NEW YORK, June 26 (Reuters) - A hiring spree by investment banks such as Moelis & Co and Greenhill & Co may boost these boutiques up the pecking order of deal advisers, at the expense of some large rivals that have been shedding talent.

But the so-called league tables are still dominated by the healthier large banks, with firms such as Morgan Stanley, Goldman Sachs Group Inc and JPMorgan Chase & Co hogging the top few spots -- a state of affairs not likely to change any time soon.

Several boutique firms have been taking advantage of the financial crisis to hire investment bankers. As these bankers start work in their new homes after a "gardening leave" between jobs, they will likely tap into their relationships with clients to bring in business, giving their new employers more heft.

Still, boutiques by design face practical limits on the number of deals they can do and lack the ability to finance transactions, unlike a bank with a large balance sheet, investment bankers said.

And as they become successful and deal activity picks up again, some of them could be snapped up by larger banks.   Continuación...