Investment banks making a landmark in the financial industry
With the rise in population there is a growing need to invest in a bid to leverage on the on the bulging population to earn profits. Investment banks have taken the opportunity by providing financial assistance to willing individuals in raising financial capital through underwriting of property or acting on behalf of the client in the issuance of securities. Investment banks have been on a steady rise in the world owing to the specialized and unique services they provide to their customers. They also provide complicated services in assisting companies to enter into mergers and acquisitions as well as providing supplementary services such as investment advisory, equity securities, trading derivatives, leveraged finance , asset finance and leasing, structured finance.
Many investment bank institutions have made exceptional achievements in the banking industry. Kenneth Griffin the founder and the Chief Executive Officer of Citadel is among the individuals whose initiative to venture in investment banking acted as an inspiration to other interested investors. Griffin started investing as a fresh year student at Harvard University. In 1990, Griffins took his aspirations a notch higher and invested into a hedge fund company, Citadel with only $4.6 million. In less than a decade later the company had grown in reaps and bounds with an investment capital of more than $ 1 billion.
Citadel now is one of the leading liquidity providers in America’s capital market. Griffin has also started other organizations under the umbrella of Citadel. They include Citadel technology a solution provider for investment management technology, Citadel securities and Citadel itself. He has appeared several times in Forbes’ Forbes 400 as the CEO of Citadel. At the age of 35 he was named as the eighth richest American under forty in the self-made category. In March 2015 Citadel appeared in the top 10 great Workplaces in Financial Service ranking by Great Places Institute. He is also the highest paid hedge fund manager, according to the 2015 rich list released by Institutional Investor’s Alpha Magazine. He is believed to have clinched earnings of above $ 1.3 billion which is a tenth of what hedge fund heads made in 2015. Most people in the world now look upon Griffin as the leading light in investment banking.
Investment banking has opened several doors for many entrepreneurs including big corporate organizations across the world. Although most do not receive deposits their role in the economy development is vital and cannot be looked down upon. The services provided in the investment banking are rare but very beneficial to clients. The banks have brought a new dawn to those aspiring to invest but face a challenge in raising investment capital.
Investment is a key ingredient in eradication of poverty and creation of employment. It should be supported at whatever cost to change the face of the world. Many people are mired in unemployment due to lack of capital to invest and high unemployment rates. Investment banks are slowly changing these by providing easier and accessible means of getting capital for investment.