Boutiques and independent investment banks muscle in

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

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