Houlihan Lokey is a leading global investment bank focused on mergers and acquisitions, capital markets, financial restructuring, and valuation. Although not as well known as the bulge bracket banks like Goldman Sachs and Morgan Stanley, Houlihan Lokey has established itself as a top boutique investment bank, especially in restructuring advisory. Its restructuring group is widely regarded as the best on Wall Street. In this article, we will take a deep dive into Houlihan Lokey’s investment banking business, including its strengths in restructuring, company culture, deal experience, and career opportunities for students interested in boutique investment banks.
Houlihan Lokey has the #1 restructuring practice on Wall Street
Houlihan Lokey’s restructuring group has advised on more than 1,000 restructuring transactions, including 5 of the largest Chapter 11 bankruptcies in history like Lehman Brothers, Washington Mutual, WorldCom, GM, and CIT Group. The firm has over 200 restructuring bankers globally, the largest team on Wall Street. Restructuring deals are much more complex and risky than traditional M&A or capital raising deals, requiring top technical skills in valuation, modeling, and analyzing complex debt structures. The crisis-driven nature of the work also appeals to top talent looking for high stakes deal experience.
Houlihan Lokey offers exceptional deal experience at the Analyst level
Junior investment bankers at Houlihan Lokey get significant hands-on experience right away compared to bulge bracket banks. Analysts work in small, collaborative teams instead of siloed groups, so they get exposure to the full deal process instead of just excel modeling. The high proportion of distressed clients also means Analysts get to work on large, complex deals as the firm’s restructuring expertise is in high demand during market turmoil.
Houlihan Lokey has an entrepreneurial, meritocratic culture
Houlihan Lokey has maintained a meritocratic, entrepreneurial culture even as it has grown to a multi-billion dollar global investment bank. It consistently ranks among the best places to work on Wall Street in terms of culture, work-life balance, and career progression. The firm pays out 50% of revenue in compensation and bonuses are based on individual performance, not group metrics. Its flatter hierarchy enables fast promotion cycles for top performers.
Restructuring at Houlihan Lokey offers great exit options
The complex analytical and interpersonal skills learned in Houlihan’s restructuring group make for great preparation for investing roles. Many restructuring bankers transition to distressed investing/credit investing at hedge funds and private equity shops. The exposure to company operations and debt capital structures also provides unique insight for generalist investing roles down the line.
Houlihan Lokey has rapidly expanded in Asia
Houlihan Lokey has added offices across Asia in recent years, including Hong Kong, Beijing, Tokyo and Singapore. Its Hong Kong office has grown from just 2 analysts a couple years ago to over 10 now across M&A, restructuring and oil & gas groups. The firm recruits Analysts for both summer internships and 6 month off-cycle programs, making it accessible for international students.
In conclusion, Houlihan Lokey stands out as a top boutique investment bank, especially for students interested in restructuring advisory. Its market leading restructuring practice provides unparalleled deal experience and technical development for new Analysts. The entrepreneurial culture also enables motivated young bankers to advance quickly. As Houlihan continues expanding in Asia, it represents an excellent opportunity for international students to land offers at a prestigious boutique bank.