Boutique Investment Bank Hiring On the Rise

More signs that the industry is on the rebound: A report by analysts at Keefe, Bruyette & Woods says the managing directors who were recently hired by Lazard, Greenhill and Evercore will bring in an estimated $300 million in new revenues to the boutique banks in 2010 and 2011, when M&A activity rebounds.

The report, mentioned in Wealth Bulletin, notes that the incremental revenue brought in by a senior managing director is substantial. A managing director at a firm such as Lazard can generate up to $8 million per year in advisory revenues.

It’s a big reason why independent banks are reaping the benefit of the steady migration of senior talent from failed, merged or weakened bulge bracket firms. Of the 67 senior managing directors hired by Evercore, Greenhill, and Lazard, nearly 40 percent came from bulge bracket competitors such as Lehman Brothers, UBS, RBS, Dresdner and Merrill Lynch.

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