What resources are required to start an investment bank?
Recently, I came up with an idea along with several of my classmates for what we think is a unique business model for an investment bank. We believe this business model would fit a niche that is not currently occupied by existing i-banks. I don't want to go into detail about how this bank would differ from existing i-banks (PM me if you're really interested), but I would like to find out what resources are needed to start an investment bank from scratch. Specifically, how much capital would be necessary to start a bank that serviced small and mid-sized businesses? Also, I assume that to generate a substantial amount of business it would be necessary to have some partners in the business with substantial i-banking experience. I've read about banks that were started by associates. Is this reasonable, or would we need to convince someone like an MD or VP to join the business? Any advice would be greatly appreciated. Thanks in advance!
An investment bank is nothing more than a rolodex and some start up capital...it would be helpful to have at least 1 or 2 senior members as they would hopefully have long standing client relationships and prior experience. Ken Moelis is a perfect example of a highly respected guy on WS who was able to start his own shop
It can be done and I do think there is tremendous opporunity in this environment to begin a specialized sell-side advisory business. You would really have to offer some value add to convince a client to work with you as opposed to some well established MM bank.
PM if you come up with anything interesting
I was wondering if this post is still live as we are also working on the same idea and it would be great to talk.
Very interested in this topic as well.. Agree there is tremendous opportunity for specialized advisory
Creating a Bank - Insights/Advice? (Originally Posted: 06/23/2013)
Hey fellow monkeys,
I recently started reading stuff on WSO and love the website. I wanted to run something by everyone, and anyone who can provide me with insights or advice, I'd be really appreciative.
I'm currently an mergers and acquisitions intern at a medium sized dentist office. To add to that, I don't attend a target school.
I've been working my butt off just to graduate in 3 years with a finance degree. On the deans list and honors college.
But to get to the point, I wana make my own bank, not necessarily in the U.S, but rather making it in Asia to help revitalize the economy and help develop 3rd world countries (sounds crazy to most, I know).
Sooo.... with the little you may know of me, going to a non-target school and currently in my senior year of Univ. and also in a M&A internship... what are the most crucial and beneficial steps I could take to achieve my goal ASAP. Any thoughts??
Best,
A new monkey....
M&A intern at a dentist's office? He could be facilitating thatbig merger between Weinberg DDS and Rosen DDS
M&A at a dentist office? you must work wicked long hours.
Starting a bank out there usually requires a couple of millions starting capital, I believe at least 10+ million$ to get a license, plus experience board members.
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