Independent investment bank, Houlihan Lokey, has increased entry-level salaries for its investment bankers to $105,000, surpassing many of its larger rivals as a pay battle heats up on Wall Street. 

The US-headquartered bank, which has a growing presence in Europe, has joined larger rivals with a pay rise, which sees second-year analysts earn $115,000 and those in their third year bumped up to $125,000, according to people familiar with the move.