Starting my own investment bank? Good or bad idea?

Not sure what it would even take to start one, but figure if an investment bank is a good thing then one more investment bank in existence would be a good thing. Anyone want to comment?

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Comments (32)

May 4, 2021 - 7:12pm

To put it simply, unless you're an insane MD with massive clients that you could pull-- most likely can't due to contract. It will be excruciating to try and start an investment bank and actually get clients.

May 4, 2021 - 11:27pm

False. I know someone who started one. There are hundreds of IBs in the U.S. You can run a lean team with small LMM-MM deals and make a decent living working the hell out of your network, or paying a BD guy to pursue LMM capital raises (debt and equity), mergers, owner divestitures, and acquisitions. You can absolutely start your own IB, get in touch with a good 3rd party broker-dealer and don't expect to be profitable right away. Typically the IB you started will only get it's first few deals bc of your personal track record, so if you've done $x billion worth of transactions in the past you should be fine.

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  • Incoming Analyst in IB-M&A
May 4, 2021 - 10:15pm

He was on a WSO podcast that you can find if you go to his first few comments. He sounds relatively normal, maybe lacking in EQ. But the comments read like they were written by someone with Aspergers (I don't mean this in a derogatory way at all)

  • Incoming Analyst in IB-M&A
May 4, 2021 - 10:20pm

I agree. I meant in the podcast, he doesn't sound nearly as bizarre as in his recent comments

May 5, 2021 - 10:45am

Ok well this dude is clearly not in the right state of mind. He went from Moelis to spamming this forum with comments that make absolutely no sense. Also his responses to comments on his posts are comical and so out of touch with reality. Whole thing is just strange

May 4, 2021 - 11:37pm

I wouldn't say less than a dozen. Go on LinkedIn and there are hundreds of IBs in the US alone. Pretty much any halfway decent MD with a few years from even a medium sized bank with a few $B in transaction volume over the years as a track record, solid industry connects, and relentless hustle to chase after middle-market deals with a lean team can make it happen. I've seen it firsthand. There are more no-names chasing down $billions in transaction volume among the private LMM and MM markets than you would believe. 3 guys splitting the commission on $300million aggregate of transaction volume for the year from straightforward deals isn't a bad gig.

Trust me, back in the days when I was really down bad I would go through LinkedIn and create my own personal database of small-time regional boutiques and the people involved with them. Life isn't all BBs and EBs

Unless you mean by start an EB or the next BB, then yes, that's a very elite group. But starting your own no-name regional that pulls in a few $million in revenue each year is actually within the realm of possibility. 

  • Anonymous Monkey's picture
  • Anonymous Monkey
  • Rank: Chimp
May 6, 2021 - 6:37pm

I appreciate your concern. I def don't feel like I am Gd. I feel fine. Maybe just not understanding etiquette here. Cultural differences maybe too. Misunderstanding. Miscommunication. Who knows. But all is well thankfully

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