As the financial crisis unfolded over a decade ago, major investment banks underwent massive changes and restructuring. Now, years later, certain banks have emerged as top players in the restructuring investment banking space. This article will analyze the key rankings and leading restructuring investment banks based on metrics like global revenue, M&A advisory fees, and more. We’ll examine how bulge brackets like JPMorgan, Goldman Sachs and boutiques like Centerview Partners and Evercore have fared. Trends like large banks losing ground to specialized boutiques will also be explored. Overall, the analysis will identify the top restructuring investment banks after the financial crisis dust has settled.
JP Morgan leads all banks in global revenue generation
According to recent data, JP Morgan dominates all other banks in terms of total global revenue generation ability across investment banking and sales & trading businesses. Their revenue totals a massive $26.4 billion, excluding additional lending & securities services revenue streams. Goldman Sachs and Citigroup take the next two spots with over $20 billion in global revenue respectively. However, Citigroup’s ranking is slightly inflated due to including other commercial banking revenues. Among the bulge brackets, Bank of America, Barclays and Deutsche Bank round out the top players in global revenue generation.
Boutiques like Centerview and Evercore outrank bulge brackets in prestige
However, traditional prestige and competitiveness rankings like the influential Vault tell a different story. Centerview Partners, founded only in 2006, takes the #1 spot again in 2021 due to having the best work-life balance, future business outlook and employee satisfaction scores. Close behind is a fellow boutique – Evercore, which has been growing rapidly by poaching senior bankers from bulge brackets like Goldman. In fact, boutiques occupy 8 out of the Top 10 positions in the Vault rankings. Goldman plunged to #19, the only bulge bracket in the Top 20 besides Morgan Stanley.
Lower costs and specialized expertise give boutiques an edge
Boutique restructuring investment banks have key structural advantages over their bulge bracket peers. Firstly, lower overhead costs and no proprietary trading businesses lead to superior profit margins. Secondly, by focusing on a few key industries and advising services, they develop specialized expertise not matched by large banks juggling an array of businesses. Large banks also suffer from conflicts of interest in advising both buyers and sellers. Finally, boutiques can offer better work-life balance and quicker career advancement to young bankers. Hence, top talent migration from big banks to elite boutiques is accelerating.
Resurgence in M&A spells promise for Goldman and Morgan Stanley
However, a resurgence in global M&A activity, especially driven by private equity mega buyouts, plays to the historical strengths of Goldman Sachs and Morgan Stanley. As such deals multiply, these two banks are likely to advance their competitiveness by one tier owing to their pedigree in handling large, cross-border transactions. But JP Morgan’s dominant position across banking is unlikely to be seriously challenged in the near future.
The financial crisis marked a major reordering of the investment banking landscape. While Morgan Stanley retained its stature, Goldman Sachs ceded significant ground toSpecialized boutiques like Centerview, Evercore and Moelis emerged major winners. Still, mega banks like JP Morgan and Bank of America consolidated their dominance.