Spence quits search firm Russell Reynolds, sets up own firm

Paola Solares, also previously with Russell Reynolds, has joined her, adding a focus on derivatives. Together they have established a niche in equity sales and derivatives and are reported to be doing searches for JP Morgan. Spence could not be reached for comment.

She is not the first headhunter in financial services in recent months to set up a boutique business. Calvert Percival, founded by Julie Calvert and Yvette Percival, and HammondBlack, set up by Elizabeth Hammond and Trevor Foster-Black, are both recent arrivals as niche players.

The proliferation of search boutiques has only heightened the competition in search in difficult markets. One headhunter at a global firm said: "They are crazy. Investment banks don't want more than one boutique at a pitch for a search."

But for established headhunters with a good contact list, low overheads and the financial freedom to do just a few searches a year, going solo can still be a lucrative business.