What does “Boutique Investment Bank” means?
Question by Nablus: What does “Boutique Investment Bank” means?
Best answer:
Answer by ruca80
usually means: high net worth clients only, or offer specialty services that other banks, or investment banks, do not offer; typically do not have many locations.
What do you think? Answer below!
An investment bank is a business that helps companies go public, by creating shares and selling them. They help companies create debt (bonds) and sell it. They also help companies merge or buy one another (M&A).
Because they need millions of dollars of IT infrastructure and have a giant rolodex filled with very rich people and investment companies (i.e. pension funds) it only makes sense for the investment bank to also buy and sell “used” stocks and bonds in the secondary market.
A BOUTIQUE investment bank doesn’t offer all of these services. For example, Merrill Lynch can get you any stock you want, manage your investment dollars for you AND take your company public. Lazard will only manage money for you and take your company public.
Lazard doesn’t offer clearing and prime brokerage either. Explanations of those services would take several more rounds of Q&A.