Choosing between a bulge-bracket bank and an elite boutique can feel like picking sides in a silent war. On the one hand, the global franchises – JPMorgan, Goldman Sachs, Morgan Stanley – offer scale, brand prestige, and a conveyor belt of deal flow. On the other hand, firms like Evercore, Lazard, or PJT provide leaner teams and higher deal mandates.
Common wisdom holds that bulge brackets teach you the ropes broadly, while boutiques offer responsibility earlier. However, data on learning curves, compensation differences, and career outcomes reveal a more nuanced picture. This analysis unpacks the trade-offs, examines the evidence, and looks at what matters most for analysts and associates planning their early careers.
It helps to define these terms. Bulge-bracket banks dominate global league tables across M&A, equity and debt underwriting, trading, and advisory. In 2023, the top five – Goldman, JPMorgan, Morgan Stanley, Bank of America, Citigroup – led 28% of G3 bond underwritings and advised on 22% of announced M&A value.
Elite boutiques focus on advisory – often M&A or restructuring – with smaller teams (200–600 bankers) and no trading desks. Firms like Evercore, Lazard, PJT Partners, and Centerview Partners captured 11% of global M&A fees in 2023, up from 8% in 2020. Despite a narrower focus, boutiques often compete directly with top franchises on mid-cap to large-cap deals.
Key distinctions:
Bulge-bracket analysts see hundreds of pitches, debt syndications, and ECM transactions each year. Analysts at Goldman Sachs, for example, may work on 40+ live deals in their first year. This high volume means broad exposure to process mechanics, documentation, and cross-regional tasks. Typically, however, juniors focus on data gathering or preparing presentation slides, while more senior staff handle valuation and negotiation. If you’re curious to see how top investment banks structure deals, I have put together a database of 400 M&A decks
Boutiques staff bankers on fewer simultaneous transactions (10–20 live deals per junior annually). The upside is greater direct exposure – juniors may join client calls or draft board presentations early on. At Centerview, first-year analysts participate in valuation calls within weeks and draft opinion memos for CEOs. On the flip side, the narrower deal set means less experience with leveraged finance or equity capital markets.
| Metric | Bulge Bracket | Elite Boutique |
|---|---|---|
| Average live deals (Yr 1) | 40+ | 10–20 |
| Direct senior-level exposure | Limited | High |
| Deal type diversity | M&A, LBO, ECM, DCM | Primarily M&A/Restructuring |
| Learning by repetition | Yes | Selective |
Role depth can vary significantly. In bulge-bracket banks, model building is often spread across teams, and analysts might rotate through industry groups with limited end-to-end ownership. At JPMorgan, for example, first-year analysts rotate across sectors but rarely own a model throughout a transaction.
Boutiques typically assign key work – P&L models, presentations – directly to juniors, encouraging ownership early. At Evercore, juniors may lead valuation updates and draft client memos in their first few months, though they have less administrative support.
If your goal is rapid technical skill development and early client interaction, boutiques offer a fast path. If you value exposure to different products and sectors – such as capital markets or leveraged buyouts – bulge brackets often offer a broader education. For more on building technical skills, check out my financial models and case studies.
Compensation for analysts has become similar at both bank types. In 2024, first-year analysts at both reported base salaries of $100,000–$110,000. Bonuses tell a different story: bulge-bracket bonuses generally range from $60,000–$80,000, while boutiques can offer $80,000–$100,000 with similar performance. For Year 2 associates, compensation is $250,000–$300,000 at bulge banks and $275,000–$350,000 at boutiques.
Year 1 total cash comparison:
Boutique bonuses tend to be more performance-linked, varying as much as 20% depending on fee pools.
Long hours are a fact of life. Most surveys show average weekly hours of 75–85 at bulge-bracket firms and 80–90 at elite boutiques for M&A roles. Boutiques – with leaner teams and higher per-deal engagement – may have bigger spikes during roadshows and closings. Bulge banks, having multiple product streams, sometimes offer more predictable slow periods.
If you prefer periodic downtime (e.g., during ECM slow seasons), the franchise model can offer some relief.
Key insights:
If you’re examining compensation trends, you can find further details in our investment banking salary and bonus guide.
Outcomes after banking matter. Bulge-bracket alumni benefit from expansive networks that span trading, coverage, and wealth management. Goldman Sachs alumni, for example, place across more than 200 global private equity firms and several leading hedge funds.
Boutiques, though smaller, feature close-knit networks. Evercore juniors report about 30% placement in private equity or venture capital within two years, often via partner referrals.
Quantitative exit data:
At boutiques, smaller headcount can amplify partner recommendations. At bulge banks, larger organizations mean access to internal career fairs and opportunities in corporate strategy or capital markets, which may not exist at many boutiques.
For those interested in private equity prep, check out our top 50 questions of a typical private equity interview.
Culture influences day-to-day experience. Bulge banks emphasize global teamwork and structured training, with analyst cohorts of 60–100. This fosters a sense of community but sometimes lacks a personal touch. Formal leadership talks and program rotations help build group cohesion.
Boutiques offer flatter structures. Juniors often work closely with senior partners, receiving direct feedback. Team lunches or dinners during busy periods become important social anchors. However, fewer people can magnify interpersonal clashes.
Managing Director perspectives:
Choosing fit is key. Introverts or those who like structure may thrive in large organizations; self-starters and those who like interaction may prefer boutiques.
There’s a common belief that bulge-bracket banks offer a “safety net” while boutiques require “all-in” commitment. However, actual attrition rates are similar: about 15% of Year 1 analysts leave bulge banks, versus 12% at boutiques.
Clear performance data is rare: firm-wide deal closing success or client satisfaction rates are not published. Blind spots remain.
Still unclear:
Acknowledging these gaps is important as you weigh career choices.
How might the future shift for juniors deciding between these models?
1. Boutique consolidation:
As advisory fee pools become more competitive, some mid-tier boutiques may merge or close, concentrating market share among the largest advisory shops.
2. Bulge bracket specialization:
Large banks may further separate advisory from capital markets and trading. We already see internal teams (e.g., M&A vs. industry coverage) gaining more independence.
3. Flexible career paths:
Digital transformation – in data, analytics, and remote work – may make cross-bank movement easier. Both bulge and boutique alumni could find more routes into private equity, hedge funds, or corporate development, regardless of origin.
Analysts and associates have more flexibility and resources than ever to shape their careers, aided by robust alumni networks and the growing number of career resources available.
For more on specific skill sets useful across both banks and boutiques, consider our guide to key investment banking and private equity formulas and ratios.
The choice between bulge bracket and elite boutique isn’t a matter of better or worse – it’s about style, exposure, compensation, culture, and long-term goals. Bulge brackets provide scale, diverse experience, and a massive network. Boutiques trade breadth for intense focus and earlier responsibility.
As banking evolves, technical skills, adaptability, and network quality remain central. Examine your preferences for work environment, learning, stress, and career plans before committing. Each path offers strong prospects for those willing to learn and contribute.
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