We've suggested that boutique investment banking firms were poised for growth as the big-name investment banks struggle. It certainly seems to be playing out that way for Greenhill & Co.

IDD notes: The firm "has become a haven for investment bankers who were either looking to escape from or were laid off by bulge-bracket banks. As of May 2009, it employed 55 managing directors, or 36 percent more than it did at the beginning of 2008. Like many other boutiques, it has benefited from the financial crisis as more clients seek independent advice."

Are we seeing the beginning of a profound movement in the industry, whereby top investment banking advisory work migrates to smaller firms, while the big name firms continue to be dominated by trading concerns? The banking vs. trader divide has been exacerbated a bit by the recent financial crisis and controversy over CDO (CDO news) trading practices.

If you're a big name investment banker, at some point you've got to ask yourself: Do I want to be somewhere where investment banking is not the main show? The answer may be "no," for more people. 

For more:
- here's the article

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