Boutique advisors make their move
Independent corporate advisory firms are becoming a more attractive employment option for Aussie i-bankers. Established boutiques - such as Caliburn, O'Sullivan Partners, and Lazard Carnegie Wylie - are selectively hiring just as Macquarie and the foreign investment banks are downsizing.
"The boutiques are more likely to recruit in quiet times because the marketplace is less competitive," says Melissa Tal, a recruiter at Michael Page International.
Many niche advisors are slowly building market share and expanding their teams. But they are hiring selectively, rather than aggressively, says Michael Notley, a senior consultant at SMF Recruitment.
"Some strategic hiring is taking place because boutiques now have access to a broader candidate pool, and they don't have to factor in additional costs such as upfront bonuses. They will be in a good position to take advantage of any recovery in the market later this year," adds Notley.
The boutiques' rising status and comparatively good financial health is also making them more appealing to candidates. "They are appearing on major transactions and businesses are now coming to them. Importantly, advisory-only firms don't have exposure to problematic global market transactions like the banks do," adds Notley.
While the benefits of boutiques remain largely unchanged, the candidate perception of them has been affected by the plight of the big global banks, according to Tal. "Someone who may not have considered them in the past may now be more interested."
She says the traditional advantages of moving to a smaller firm include: a flatter management structure which can lead to faster promotion; more client exposure even at a junior level; and better work life balance.
But don't expect to walk into a boutique job just because you've been a bulge bracket hot shot. Tal explains: "During the selection process there is more emphasis on cultural fit, rather than pure technical skills. In some cases, almost everyone in the company might meet with the candidate. The people you take on have a greater impact on the end result when there are only 15 in the whole company."
