The classic Merchant Bank has long been defined as a "European Financial Institution" that engages in Investment Banking, Counseling, Advising and in Mergers and Acquisitions.
The American variant is NOT a Banking Entity; in fact, America does NOT have "Merchant Banks" but rather entities like Capital Corp who are engaged in the activity of Merchant Banking.
Merchant Banking is the process of acting as PRINCIPAL and/or Agent in Project Financing, Mergers or Acquisitions, and/or Advising Clients in the "Structuring" of the funding needed for their Project, and/or assisting them in their Negotiations for the realization of a Project. In the 1980’s Merchant Banking became identified for the most part with leverage–buy–out transactions and related Junk Bond Financing, and some major Investment Banks and Leverage-Buy-Out Firms dominated the activity of the Mega Transactions (generally in excess of USD $500 million).
Inevitably, the Merchant Banking Model exemplified by the "Major Players" became emulated, though on a smaller scale, and Experienced Bankers like Mr. Herard (who has 35 years of experience in Banking) started their own activities and formed "Boutique Merchant Banking Groups" based on their Extensive Experience and impressive Network of Contacts.
In fact, a "Good" Merchant Banker has come to be understood as one who combines Experience and Contacts, whether those be Professional or Political, and the combination of those Contacts with the Merchant Group’s OWN CAPITAL and creativity in structuring deals is THE most formidable force on the Market to give the Client/Promoter of any given Project access to the money needed to Realize a Project.
In committing its own Funds, Capital Corp does not act as a Broker but rather as Principal – one who, together with its Contacts, has the ability to bring to the table the funds needed to realize almost any given type of Project.
Welcome to Capital Corp Merchant Banking
