Boutiques and independent investment banks muscle in

Lanes Merge Road Sign

The big investment banks, most notably Goldman Sachs and JPMorgan Chase, continue to take the majority of fees from advising on M&A. But boutique and independent investment banks are gaining on them.

The New York Times reports that in 2013, boutiques and independents earned a combined 30% of fees for completed transactions, according to Thomson Reuters, the highest since it began keeping track in 2000.

The figure was a big jump from 2011, when it was about 25%, and was almost double what it was a decade ago, at about 15%. In 2012, the number was 28%.

With global M.&A. advisory fees topping $19.1bn in 2013, boutiques and independents collectively earned $5.73bn for their work. By contrast, the four top banks - Goldman Sachs, JPMorgan, Morgan Stanley and Bank of America Merrill Lynch - collected nearly $5bn in fees combined.

But overall fees from M.&A. deals were down 12% in the year, so boutiques and independents were getting a larger slice of a smaller pie.

To access the complete New York Times article hit the link below:

30% of M&A Advisory Fees Went to Smaller Firms in 2013

Steep Penalties Taken in Stride by JPMorgan Chase

image: © Hikosaemon

Register for Financial Markets News Alerts