Starting a Boutique Investment Bank focused on IPOs

Hello there. I am not for sure if I want to go into finance, but I have been looking into finance topics and the IPO process really interests me. I was wondering if anyone knows of how I could start an investment bank focused on IPOs. How does that whole process work and what should I be studying/looking into to better understand this subject? Is there a market for starting a small investment bank focused on IPOs? Who would I need to hire? What/who is apart of the IPO process? Any advice would be greatly appreciated... thanks

 

If you're a student, the best experience you could get at this point is landing an internship in an ECM group at a big bank that leads a lot of IPOS (you can refer to league tables on your own time) with Equity-Linked or Sales and Trading being a runner up.

A boutique specializing in IPOs doesn't totally make sense because typically in order to have underwriting capabilities you have to have the capital to manage that risk. This is why boutiques typically focus on advisory (no underwriting needed!)

As far as what to study, just keep up with current events and deals in the market. If you're interviewing, definitely be able to describe a few IPOs that have occurred in the market. Understand if it traded up or down, what its price range was, what the proceeds were, who they went to and/or how they were used (if disclosed). You'll get experience on roadshow and bookrun process in an internship / first year IB gig.

This year has been interesting for IPOs, very lumpy in terms of new issuance due to companies being hesitant in such a volatile market, although the healthcare equity markets have seemed healthy.

 

I commend you on your drive. Network like crazy with CEOs while you are in college, take your Series 7 test, and partner with a family office (whose relationship you obtain through networking). You can do this!

 

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