The authoritative investment bank rankings released by Vault have caused major upheavals among the top investment banks in 2023. Bulge bracket banks like Goldman Sachs, Morgan Stanley, Barclays, Citi, and Credit Suisse have fallen out of the top 10, while boutique banks firmly occupy the top 3 spots. Morgan Stanley and Bank of America managed to stay in the top 10 at 4th and 5th place respectively. The top 3 investment banks are Centerview, Evercore, and Moelis & Company. This demonstrates the rise of boutique banks that focus on high quality services, outperforming traditional bulge bracket banks.
Boutique banks Centerview, Evercore and Moelis dominate top 3 spots
The Vault survey collected input from over 3,300 investment banking professionals globally. The ranking is based on prestige, firm culture, compensation, business outlook, overall satisfaction, work-life balance, and training. This year’s results show that boutique banks have outclassed the traditional bulge brackets. Centerview tops the list for the 3rd consecutive year, followed by Evercore and Moelis. These banks provide specialized services and build strong expertise in M&A, restructuring, and other advisory services. Their rankings reflect strength in quality, culture, and professional development.
Only Morgan Stanley and Bank of America make top 10 among bulge brackets
Among the bulge bracket banks, only Morgan Stanley and Bank of America managed to stay in the top 10, ranking 4th and 5th respectively. Morgan Stanley advised on some of the biggest deals over the past year, including Elon Musk’s Twitter acquisition. Other big names like Goldman Sachs, JP Morgan, Barclays, Citi, and Credit Suisse completely dropped out of the top 10, demonstrating the rise of boutiques.
Boutiques offer higher pay, better work-life balance
A key reason driving the success of boutiques is higher pay and better work-life balance. According to WSO data, boutiques pay 10-20% higher at all levels compared to bulge brackets. Evercore is known to fly employees to private islands for parties. Boutiques also require specialized skills and expertise, making recruiting more selective.
The 2023 Vault survey results demonstrate the rising prestige and reputation of boutique investment banks over Wall Street titans. Focused expertise, strong culture and higher pay give boutiques key advantages in attracting top talent.