For many people including those in business, the term Investment Banking seems like an entangled world that no one knows about, but not anymore. Investment banks are institutions charged with the responsibility of giving both advice and funding to their clients, who essentially are in trading activities for themselves or their clients. There is a difference between retail banks (takes clients deposits while offering loans, mortgage and credit cards) and Investment Banks, in that these banks are reserved for specific services.
Top services provided by Investment banks to clients include security underwriting and raising capital, advising entrepreneurs on evaluating their businesses, structuring transactions procedures and implementation. They also are involved in Equity Research, sales and trading, commercial and retail banking services, Front Vs Back office services, corporate treasury, risk management, compliance, and many other functions.
Since this business is an extremely high capital investment business, only a few individuals can afford to start and run; therefore, many such companies throughout Europe and America are publicly owned. There are only a few privately owned Investment Banking companies such as the Madison Street Capital LLC. This is one of the biggest privately owned financial investment internationally. Learn more: http://madisonstreetcapital.org/
Whether public or privately owned, these banks are controlled by wealthy investors who own quite large shares in the institution. They, therefore, form the scoop of people with the biggest say in the business. They may include financial institutions, wealthy families, extremely affluent people, bank directors and even the government, sovereign wealth funds. Small firms are as a result of either partnership or privately owned.
Clients of Investment Banks
There are up to five major clients of any investment bank namely,
Companies that mainly operate in business areas such as media, construction, retail, food and drinks, energy, healthcare, financial services and many others form part of the clients for these banks.
The Hedge Funds, Private Equity, Pension Funds are an example of the investment vehicle that pulls individuals and government to invest.
Government and government institution including export credit agencies also form part of the bank’s clients.
d) Affluent individuals
They are classified accordingly, but the minimum criterion is those with a minimum of $ 1 million investable assets that are eligible.
e) The Investment Bank itself
The bank also wants to make profits for itself, and other than the typical ways of acquiring benefits which include fees for advice, dividends, interests and trading, they also carry out their internal investment for the purpose of preventing itself against eventualities.
Throughout Madison Street Capital LLC lifetime, it has strived to uphold integrity, service delivery, leadership and excellence to all its clients internationally. Its goal is to continue offering professional corporate financial services to their customers in public and private businesses.
Madison Street Capital LLC customers benefit from a wide range of services including merger and acquisition, financial advisory, financial options and valuation services.