Boutique

What is a 'Boutique'

A boutique is a small financial firm that provides specialized services for a particular segment of the market. Boutique firms are most common in the investment management or investment banking industries. These firms may specialize by industry, client asset size, banking transaction type or by other factors to address a market not well addressed by larger firms.

BREAKING DOWN 'Boutique'

Smaller players in the financial segment can do well by positioning themselves to serve a niche. Although they may lack some of the resources of larger firms, boutique firms aim to offer more individualized services and tailor their offerings to the needs of their clients. Boutique firms are often started by former employees of larger firms who wish to strike out on their own. Working at a boutique firm can offer an alternative for finance workers who are looking for something different from the large firm experience.

RELATED TERMS
  1. Distributing Syndicate

    A group of investment banks that work to underwrite and sell ...
  2. Buy, Strip And Flip

    When a private equity firm buys out a target firm (usually with ...
  3. Peter Pan Syndrome

    A regulatory environment in which firms prefer to stay small ...
  4. Direct Market Access - DMA

    This refers to electronic facilities, often supplied by independent ...
  5. Firm

    A firm is a business organization, such as a corporation, limited ...
  6. Middle Market Firm

    A firm with sizeable annual revenues, ranging from $50 million ...
Related Articles
  1. Investing

    Should You Work At A Boutique Investment Bank?

    Boutique investment banks are consistently increasing their marketshare. Should you consider a job at a boutique instead of a large multinational investment bank?
  2. Investing

    M&A Advisory Business Boutiques: How The Small Shops Are Capturing Large M&A Deals

    M&A advisory boutiques are becoming a big business, giving large investment banks a run for their money.
  3. Active Trading Fundamentals

    Bulge Bracket Vs. Mid Market Vs. Boutique Investment Banks

    Obtain a detailed description of the primary differences between the various types of investment banks: bulge bracket, middle market and boutique.
  4. Investing

    Career Choice: Bulge Bracket Vs. Boutique Bank

    Bulge bracket banks offer higher salaries and prestige. But boutique banks are rapidly gaining market share and may offer better work/life balance and job security.
  5. Investing News

    Principal Global Investors: Investment Manager Highlight (PFG)

    Learn about the investment operations of Principal Global Investors, the Principal Financial subsidiary with more than $360 billion in assets under management.
  6. Professionals

    Financial Careers: Finance Employers

    By Brian Perry While there are many different types of entities that higher finance employees, this tutorial will primarily focus upon some of the most common types of institutions where finance ...
  7. Economics

    What is a Firm?

    A firm is a business or organization that sells goods or services on a for-profit basis.
  8. Retirement

    Financial Career Shift: Get In The Driver's Seat

    Before you agree to work for another investment firm, be sure you know what you're getting into.
  9. Professionals

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  10. Professionals

    Be A One-Stop Shop For Your Clients

    Offering comprehensive financial services can bring in business, but coordination is the key to success.
RELATED FAQS
  1. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  2. What is a typical price-to-book ratio in the financial services sector?

    Understand key distinctions of the financial services sector and learn some of the equity valuation metrics analysts use ... Read Answer >>
  3. What is the difference between private equity and venture capital?

    Learn the differences between private equity and venture capital, especially in terms of how these types of firms invest ... Read Answer >>
  4. What are the main benchmarks that track the forest products sector?

    Learn how the net debt to EBITDA ratio, EBITDA to interest ratio and debt to capital ratio financial benchmarks are used ... Read Answer >>
  5. What is the difference between a national and a regional investment brokerage?

    Learn the differences between a national and a regional investment brokerage, and the advantages and disadvantages of doing ... Read Answer >>
  6. What happens when the lender of the borrowed shares in a short sale transaction wants ...

    In a short sale transaction, shares are borrowed from the lender by the short seller and sold in the market. The lender of ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center