Los Angeles has become an important financial center in the US, with a large number of prestigious investment banks setting up offices there. However, unlike New York where bulge bracket banks dominate, LA’s investment banking scene is led by elite boutique banks such as Moelis & Company. These banks may have smaller scale compared to bulge brackets, but they offer comparable or even higher compensation, as well as better workplace culture.
Moelis rules LA investment banking sector
Founded in 2007, Moelis & Company has established itself as the top player in LA’s investment banking sector. It acted as the advisor for Saudi Aramco, the world’s largest IPO in history valued at $25.6 billion in 2019. The bank is also named “Best Innovation in Investment Banking” and “M&A Boutique of the Year” multiple times. Its LA team consists mainly of Wharton graduates and manages deals across different industries. Despite the tough macro environment, Moelis continues to hire aggressively with high base compensation, in contrast to layoffs occurring at many Wall Street titans.
Boutique banks offer better quality of life
While employees at elite boutiques often work long hours as well, the overall work-life balance is better compared to bulge brackets. Moelis offers good benefits like paid vacation weeks, remote work flexibility, etc. The boutique model also means bankers deal with fewer bureaucratic hurdles and politics when serving clients. Hence bankers can focus more on advising clients rather than internal politics or sales pitches.
LA boutiques lead industry rankings
In recent years, boutique investment banks have surpassed bulge brackets in industry rankings and prestige. The 2023 Vault survey shows Centerview, Evercore and Moelis topping the list, while Goldman Sachs ranked #20. This demonstrates elite boutiques are now the more desirable destinations for top talents, offering greater career development and satisfaction.
Elite boutique investment banks such as Moelis now lead the market in Los Angeles, providing higher compensation, better work-life balance as well as strong branding and deal exposure. They have become the top choices for aspiring investment bankers over Wall Street titans.