I don't understand how it happens so frequently but I often find myself in conversations on How to Start and Investment Bank when talking with friends, not that I have any that are capable of it including myself. However, from my viewpoint it seems pretty simple, most of it is similar to starting any company except for one thing, you need a senior banker that has contacts!
Yes, contacts - someone needs to have client exposure and their Rolodex in order that you can grab a few clients to Start Your Investment Bank. When rainmakers leave an investment bank they often take many of their clients with them, clients like certain investment banks but more importantly they want to deal with someone they know and have continuity with that person.
The senior banker with the Rolodex is the key; however, if you can find one of these people you have your ticket to start a bank. There are numerous examples of this including, Perella Weinburg, Cowen Group as well as Moelis. All these were started by bankers that defected with their contact list and took those customers with them.
Other than that you need some capital as well and you should probably have some interaction with a lawyer. On top of that add a few secretaries and some analysts and start working the phones. And there you go, How to Start an Investment Bank 101, I haven't done it yet but I think that would be the correct approach.
Hi,
ReplyDeleteInvestment banking is the most lucrative and exclusive career in the finance industry. It is the most lucrative and exclusive career in the finance industry. Successful investment bankers need to have strong research acumen, top-notch analytical skills and the desire to commit to the long work hours required. Thanks a lot.