eFinancialCareers

Investment bankers specializing in healthcare are finding opportunities at boutique and middle market shops in New York City and beyond.

Debra Feldman, founder of JobWhiz, an executive talent agent based in Greenwich, Conn., is just one of the observers calling the healthcare arena "hot." While she says many professionals in investment banking "simply haven't landed" after the tumult that began a year ago, those on the healthcare side don't seem to be complaining. "Recruiters simply aren't hearing from those with a healthcare specialty, so we can safely assume that they are very much in demand."

The best opportunities are cropping up at boutique and middle market investment banks, not at the bulge bracket firms, says John Mazzei, managing director and head of the financial institutions group for Rand Thompson Consultants, an executive search firm based in New York. Part of the reason seems to be the bigger shops' lackluster interest in smaller, regional and emerging healthcare services and technology companies - firms that are both propelling the sector and driving growth at the boutique investment firms servicing them. Mazzei notes opportunities in healthcare investment banking in New York City, as well as in Boston and Chicago. "We are definitely seeing people being snatched away from the much bigger firms to go work for smaller shops," he says.

Daniel Davidson, director in the healthcare investment banking group for New York-based Morgan Joseph & Co., notes healthcare remains one of the active sectors in investment banking. Many large investment houses continue to reel from the mortgage meltdown, prompting senior staff to move on in the wake of bonus-pool cuts and other austerity measures.

Benefits of Fallout

The shakeups at bigger banks are benefiting the smaller and boutique outfits. "I migrated from a larger shop, and I believe that people are really just looking to hang their hat at a place where they can do deals," Says Davidson. He previously worked as a senior healthcare banker at Jefferies & Co., in addition to holding posts at CIT Healthcare, BNP Paribas and Wachovia Securities.

Working as a junior level in the space requires the same financial skills and savvy as any other post inside of investment banking. But, Davidson adds, "Relationships are key for those in senior level positions. They have to be able to close the deal." In addition, Davidson thinks now is a very good time to hone your skills in healthcare investment banking: Between President Obama's push in the healthcare arena and moves to force technological initiatives on hospitals and practitioners, business activity for healthcare companies, and the sector's related investment banking, is sure to remain strong for some time to come.