Signs of (some) hiring life at boutique stockbrokers

Melbourne stockbroking firm Evans & Partners has announced plans to strengthen its Sydney business, and some (but not all) Australian boutiques are also expanding.

Evans & Partners has 15 staff in Sydney and wants to double that number over the next two years. Executive chairman David Evans told The Australian that the firm grew during the GFC and that the current climate of volatility provides similar prospects.

Evans is not alone. One recruiter, who asked not to be named, says brokers servicing the WA mining industry - such as Paterson Securities, Argonaut and Euroz - are performing solidly and are actively recruiting talent, especially mining analysts.

"These firms didn't have exposure to the GFC and don't have overseas parent companies telling them to downsize, which makes them more nimble," he adds.

However, it is too soon to say that there's a market-wide trend of boutiques taking advantage of the downturn to snap up staff who would otherwise work for larger players. "Any growth seems to be linked to a firm's internal desire to grow," says Victoria Biggs, co-founding partner, Platinum Pacific Partners.

Boutique v big: pros and cons

Apart from more autonomy, greater equity participation is a key benefit provided by Aussie boutiques. "You're more likely to be offered equity at a small firm, although some big firms have equity sharing too," says John Coles, CEO of Executive Group International.

"There are also different stresses working for a boutique and less commuting time, as analysts are not regularly jumping on planes to travel around the world for meetings," he adds.

Biggs says working for a niche broker with less overseas exposure can be a real benefit. "On the flipside, if the Australian economy was struggling when the rest of the world was prospering, then working for a local could prove challenging."

Likewise, boutiques tend to be more focussed on the retail and high-net-worth sectors and this creates fewer career opportunities to work in different markets, such as private equity, fixed interest and funds management. "You'll need to leave the organisation to get exposure to other markets and bigger deals," says Biggs.