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Bulge bracket vs. elite boutique vs. middle-market banks

Bulge brackets (like JPMorgan, Goldman Sachs and Morgan Stanley) are the largest global banks, with lending, trading and advisory under one roof. Elite boutiques (like Evercore, Lazard, Centerview and PJT) focus on advice for large deals without big lending arms. Middle-market banks (like Harris Williams, Baird and Houlihan Lokey) advise on smaller deals, often for private and PE-owned companies.

Inside a bank, coverage groups own an industry (healthcare, TMT) and product groups own a type of deal (M&A, leveraged finance, ECM). On a deal team, analysts build the models and slides, associates and VPs manage the work, and MDs own the client relationship.

Quick quiz (14 questions)

At an investment bank, which of these is a product group?
  1. Healthcare
  2. M&A ✓
  3. TMT
  4. Consumer retail
M&A covers a deal type across industries. The others are coverage groups.
Which firm is generally classed as an elite boutique?
  1. Citi
  2. Evercore ✓
  3. Baird
  4. Bank of America
Evercore is an advisory-focused elite boutique.
Who is mainly responsible for bringing in clients and deals?
  1. Analyst
  2. Associate
  3. Managing Director ✓
  4. Summer analyst
MDs own client relationships and originate business.
At an investment bank, which of these is a coverage group?
  1. Leveraged finance
  2. Healthcare ✓
  3. ECM
  4. Restructuring
Coverage groups own an industry. The others are product groups that own a type of deal.
What does a product group like M&A focus on?
  1. Covering every company in one industry
  2. Running IPOs and other stock sales only
  3. A type of transaction across industries ✓
  4. Lending money to companies in one region
Product groups specialize in a deal type and work with coverage bankers in every industry.
TMT stands for:
  1. Trading, Markets and Treasury
  2. Tax, Mergers and Transactions
  3. Technology, Media and Telecom ✓
  4. Trusts, Mortgages and Titles
TMT is one of the largest coverage groups at most banks.
Which title comes right after Analyst?
  1. Associate ✓
  2. Vice President
  3. Director
  4. Managing Director
The usual ladder: Analyst → Associate → VP → Director → Managing Director.
Who usually builds the financial models and slides on a deal team?
  1. Managing Director
  2. Vice President
  3. Analyst ✓
  4. Client CEO
Analysts do most of the modeling and deck work; senior bankers manage clients.
What is a Vice President's main job on a deal?
  1. Deciding which analysts get promoted each year
  2. Approving the bank's yearly budget and headcount
  3. Running the day-to-day deal process and checking the junior team's work ✓
  4. Building every model and slide on the deal personally
VPs manage the process and the team, connecting analysts' work to the MD and the client.
Which bank is a bulge bracket?
  1. Evercore
  2. JPMorgan ✓
  3. Houlihan Lokey
  4. Harris Williams
Bulge brackets are the largest global banks with full lending, trading and advisory businesses.
Which firm is usually called an elite boutique?
  1. Citi
  2. Wells Fargo
  3. Baird
  4. Lazard ✓
Elite boutiques focus on advice for large deals without big lending or trading arms.
Which firm is best known as a middle-market bank?
  1. Goldman Sachs
  2. Harris Williams ✓
  3. Morgan Stanley
  4. Centerview
Middle-market banks advise on smaller deals, often for private and PE-owned companies.
What can a bulge bracket offer that most elite boutiques can't?
  1. Senior M&A advice from experienced bankers
  2. Restructuring advice for companies with too much debt
  3. Formal analyst training programs for new hires
  4. A big balance sheet to lend money for deals ✓
Bulge brackets can lend and underwrite at scale. Boutiques mainly sell advice.
Why might a client hire an elite boutique over a bulge bracket?
  1. To get access to a bigger balance sheet for lending and a larger trading desk for the deal
  2. Boutiques can underwrite large bond and stock offerings
  3. Boutiques are required for any deal over $1 billion
  4. To get senior attention and advice with fewer conflicts from lending or trading ✓
Independent advice and senior banker focus are the boutique pitch.

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