With the increasing popularity of restructuring groups in investment banks, more and more top talents from Wall Street are moving to elite restructuring boutiques or restructuring departments in bulge bracket banks. This article will introduce some details about restructuring business and reveal the best restructuring investment banks based on their rankings, prestige, compensation and business strengths. There are some major points we are going to elaborate on: the reasons why restructuring groups are so appealing nowadays, typical workflows and exit options in restructuring groups, and key competitive edges of top restructuring investment banks like Centerview, Evercore, PJT Partners, Houlihan Lokey and Lazard. The aim is to provide insights into how to better prepare for restructuring investment banking interviews, choose firms strategically, and advance your career in this lucrative niche.
Restructuring groups provide high pay and quick promotions
The restructuring group is one of the most elite teams in investment banks. Bankers there can learn advanced financial modeling skills and gain expertise in distressed assets. Moreover, they work with top hedge funds and private equity firms on billion-dollar restructuring deals. As boutique restructuring firms are smaller in size, junior bankers have more client interactions and get involved in entire deal processes. The learning curve is steep so they can get promotions faster than peers in M&A or equity capital markets. In terms of compensation, restructuring groups also pay significantly higher than traditional investment banking divisions. For example, the average total compensation is $180k for first-year restructuring analysts while it’s only $130k for bulge bracket investment banking analysts. The lucrative pay and accelerated career path make restructuring groups highly attractive, especially for students from top business schools.
Elite boutiques dominate restructuring league tables
According to recent restructuring league tables, Centerview, Evercore, PJT Partners and Houlihan Lokey are the most active restructuring advisors on Wall Street. They advise debtors and creditors on complex Chapter 11 bankruptcies and out-of-court restructurings. With specialized expertise and key client relationships, these elite boutiques lead in billion-dollar cases like Lehman Brothers, Washington Mutual, General Motors and CIT Group. Although bulge bracket banks like Goldman Sachs and JPMorgan also have strong restructuring practices, their market shares are still dwarfed by top restructuring-focused advisors. Furthermore, boutiques can avoid conflicts of interest issues commonly seen in large banks with extensive business lines.
Houlihan Lokey offers the best restructuring analyst experience
Among all the investment banks with restructuring capabilities, Houlihan Lokey is most highly regarded in terms of the analyst experience. With around 200 restructuring professionals globally, Houlihan Lokey gives the highest deal volume and direct client exposure to junior bankers. Analysts participate in all phases of the restructuring process, including liquidity analysis, business plan review, solvency assessment, and valuation modeling. They also join on-site management presentations, creditor committee calls, and court hearings. Such intensive hands-on training allows analysts to quickly ramp up technical and soft skills. Moreover, the supportive company culture facilitating free communications across levels is another plus of Houlihan Lokey.
Evercore and PJT provide strong institutional client coverage
While Houlihan Lokey focuses on mid-market restructuring assignments, Evercore and PJT Partners are the go-to advisors for large-cap institutional clients. With their origins in investment banks like Blackstone and Morgan Stanley, Evercore and PJT boast extensive relationships with private equity funds, hedge funds and creditor committees. Their restructuring practices also benefit from cross-selling with other advisory services like M&A. The considerable big-money client base gives analysts opportunities to work on marquee Chapter 11 cases. However, the trade-off is that analysts tend to play more supporting roles in mega-deals led by senior bankers.
In conclusion, Houlihan Lokey, Evercore, PJT, and Centerview Partners are the leading restructuring advisors on Wall Street. Joining their restructuring groups allows junior bankers to enjoy high pay, quick promotions and diverse exit options. When preparing for interviews, banking candidates should thoroughly research firms’ recent landmark deals, office cultures, specialized expertise and institutional client coverage.