Larry Smith and Robert Birnbaum founded Third Wave Global Investors hedge fund after working together for 15 years at large financial institutions. They saw an opportunity to create more consistent investment returns through a combination of quantitative and qualitative techniques, which they called the "third wave" of hedge fund investing. In setting up their fund, they had to establish the proper legal structure and select reputable third-party vendors for administration, prime brokerage, custody, and other services to attract investors and comply with regulations. This involved creating investment vehicles in the US and Cayman Islands and completing other regulatory requirements like SEC registration to structure an efficient and compliant fund.
This document discusses the principles of form over substance and substance over form in Islamic finance. It provides examples of how substance over form is applied in certain cases where form and substance are inconsistent, such as in Ijarah Muntahiah Bittamleek contracts and evaluating offer and acceptance. While form is important in ensuring legal and Sharia compliance, substance is also important to assess the true economic nature of a transaction. The Sharia Advisory Council has ruled that both substance and form should be consistent, but substance takes precedence over form in cases of inconsistency.
Merchant banking & case study analysisT HARI KUMAR
This document analyzes the marketing effectiveness of merchant banking services between public and private sectors in India. It compares two public sector banks, SBI Capital Markets and Industrial Securities and Finance Company, to two private sector banks, DSP Merrill Lynch and Kotak Mahindra Capital, based on their marketing mix strategies. The analysis shows that while the public sector banks have slightly higher overall marketing effectiveness, the private sector banks have a higher marketing efficiency, with people and product being the most important elements of their marketing mix. The study concludes there is relevance to applying marketing mix concepts in merchant banking and competition in the sector has increased with its growth.
Merchant banking has evolved over the past few decades in India. It was formally defined and regulated in 1992 by the Securities and Exchange Board of India (SEBI). Merchant bankers play an important role in facilitating capital raising for companies and supporting the growth of financial markets. The document discusses the history and evolution of merchant banking in India. It also outlines the various services provided by merchant bankers like managing public issues, advising on mergers and acquisitions, and providing post-issue support to companies. The key roles and regulations governing merchant banking in India are also highlighted.
1) Merchant banking originated from merchant houses in the 18th-19th centuries financing international trade through bills of exchange. Over time, merchant banks took on roles of accepting bills of exchange, raising capital for foreign governments, and providing various financial services.
2) In India, merchant banking services were introduced by foreign banks in the 1960s-1970s and specialized merchant banking institutions were established in the 1970s in response to growing corporate financing needs.
3) Merchant banks play an important role in India by mobilizing funds for corporate and industrial development and advising corporations on issues like capital raising and mergers and acquisitions.
Merchant banking in india jatin garg 11107027Jatin Garg
The document provides an overview of merchant banking in India. It discusses the evolution and historic development of merchant banking, the key roles and services provided by merchant bankers such as issue management, underwriting, and corporate counseling. It also outlines the leading public sector, private sector, and foreign merchant bankers operating in India, as well as the present scenario and challenges faced by the industry. Case studies are presented on three prominent Indian merchant banking firms - BOB Capital Markets Limited, Kotak Securities, and IDBI Capital - and their various investment banking and financial services.
A merchant bank provides capital to companies through equity ownership rather than loans. They also provide advisory services on corporate matters. In the UK, merchant bank refers to an investment bank. According to the FDIC, merchant banking involves negotiated private equity investments by financial institutions in unregistered securities of private or public companies. Merchant banking activities include management of public issues like IPOs, payment of dividends, underwriting, and acting as a monitoring agency.
The document discusses Islamic capital markets and their products. It notes that Islamic capital markets are markets where all transactions, operations and activities are carried out according to Islamic law. The key products in Islamic capital markets are the sukuk (Islamic bond) market and the Islamic equity market. The document describes the major types of sukuk instruments, including mudarabah, musharaka, ijara, murabaha, salam and istisna sukuk. It also discusses the features of the Islamic equity market.
This document discusses the principles of form over substance and substance over form in Islamic finance. It provides examples of how substance over form is applied in certain cases where form and substance are inconsistent, such as in Ijarah Muntahiah Bittamleek contracts and evaluating offer and acceptance. While form is important in ensuring legal and Sharia compliance, substance is also important to assess the true economic nature of a transaction. The Sharia Advisory Council has ruled that both substance and form should be consistent, but substance takes precedence over form in cases of inconsistency.
Merchant banking & case study analysisT HARI KUMAR
This document analyzes the marketing effectiveness of merchant banking services between public and private sectors in India. It compares two public sector banks, SBI Capital Markets and Industrial Securities and Finance Company, to two private sector banks, DSP Merrill Lynch and Kotak Mahindra Capital, based on their marketing mix strategies. The analysis shows that while the public sector banks have slightly higher overall marketing effectiveness, the private sector banks have a higher marketing efficiency, with people and product being the most important elements of their marketing mix. The study concludes there is relevance to applying marketing mix concepts in merchant banking and competition in the sector has increased with its growth.
Merchant banking has evolved over the past few decades in India. It was formally defined and regulated in 1992 by the Securities and Exchange Board of India (SEBI). Merchant bankers play an important role in facilitating capital raising for companies and supporting the growth of financial markets. The document discusses the history and evolution of merchant banking in India. It also outlines the various services provided by merchant bankers like managing public issues, advising on mergers and acquisitions, and providing post-issue support to companies. The key roles and regulations governing merchant banking in India are also highlighted.
1) Merchant banking originated from merchant houses in the 18th-19th centuries financing international trade through bills of exchange. Over time, merchant banks took on roles of accepting bills of exchange, raising capital for foreign governments, and providing various financial services.
2) In India, merchant banking services were introduced by foreign banks in the 1960s-1970s and specialized merchant banking institutions were established in the 1970s in response to growing corporate financing needs.
3) Merchant banks play an important role in India by mobilizing funds for corporate and industrial development and advising corporations on issues like capital raising and mergers and acquisitions.
Merchant banking in india jatin garg 11107027Jatin Garg
The document provides an overview of merchant banking in India. It discusses the evolution and historic development of merchant banking, the key roles and services provided by merchant bankers such as issue management, underwriting, and corporate counseling. It also outlines the leading public sector, private sector, and foreign merchant bankers operating in India, as well as the present scenario and challenges faced by the industry. Case studies are presented on three prominent Indian merchant banking firms - BOB Capital Markets Limited, Kotak Securities, and IDBI Capital - and their various investment banking and financial services.
A merchant bank provides capital to companies through equity ownership rather than loans. They also provide advisory services on corporate matters. In the UK, merchant bank refers to an investment bank. According to the FDIC, merchant banking involves negotiated private equity investments by financial institutions in unregistered securities of private or public companies. Merchant banking activities include management of public issues like IPOs, payment of dividends, underwriting, and acting as a monitoring agency.
The document discusses Islamic capital markets and their products. It notes that Islamic capital markets are markets where all transactions, operations and activities are carried out according to Islamic law. The key products in Islamic capital markets are the sukuk (Islamic bond) market and the Islamic equity market. The document describes the major types of sukuk instruments, including mudarabah, musharaka, ijara, murabaha, salam and istisna sukuk. It also discusses the features of the Islamic equity market.
Merchant Banking - Indian Corporate Market, Clause 49 & Masala BondsAbhijeet Deshmukh
A comprehensive presentation on merchant banking. It starts with Indiann corporate bond market and go on to basics of merchant banking and it digs deep into merchant banking activity. It also has few slides on Clause 49 (Corporate governance) and ends with latest topic Masala Bonds
Merchant banking provides various financial services including investment banking, portfolio management, underwriting public offerings, and mergers and acquisitions advice. It originated in London when banks helped finance foreign trade and raise funds for developing countries. In India, merchant banking grew with the establishment of banks like Grindlays and Citibank in the 1960s-1970s. Merchant banks operate under regulations set by the Securities and Exchange Board of India that classify banks by the types of services they can provide and require minimum capital levels. They must obtain authorization, follow code of conduct guidelines, and contribute to the market by channelizing capital and ensuring regulatory compliance.
The document discusses the history and evolution of merchant banking in India. It provides details about modern merchant banking services, categories of merchant bankers based on net worth, and differences between merchant banks and commercial banks. Key points covered include that merchant banking originated in Italy and France in the 17th-18th centuries and was introduced to India through Grindlays Bank in 1967. Modern merchant banks provide services like management advising, underwriting, and portfolio management.
The document discusses the history and functions of merchant banking in India. It begins by defining merchant bankers and non-bank financial institutions. It then outlines the origins of merchant banking in London and how merchant bankers helped develop underdeveloped countries and domestic business. Over time, merchant bankers formed associations and began offering more services. The functions of merchant bankers grew to include corporate counseling, project counseling, loan syndication, issue management, and underwriting. Merchant banking gained prominence in India in the 1980s during a boom in new stock issues.
The document discusses key aspects of company directorship under the Indian Companies Act 2013, including:
1. Directors are appointed by the company's articles, shareholders, existing directors or third parties to manage the company's affairs.
2. Directors must obtain a Director Identification Number (DIN) and can be removed by shareholders, the central government or courts.
3. The document outlines the duties and liabilities of directors, such as ensuring compliance with the company's objectives and applicable laws.
The document outlines the syllabus for a course on Merchant Banking and Financial Services. The syllabus covers 5 units: (1) an introduction to the Indian financial system and merchant banking, (2) issue management, (3) other fee-based management services, (4) fund-based financial services including leasing and consumer credit, and (5) other fund-based services including venture capital. Each unit covers various topics and functions within that area of merchant banking and financial services.
Merchant banking provides non-fund based financial services like advising on mergers and acquisitions, underwriting securities issuances, and portfolio management. It originated in Italy and England in the 12th-18th centuries and was formally introduced to India in 1967. Merchant banking plays an important role in the growing Indian economy by facilitating corporate fundraising and restructuring, project financing, and connecting companies to capital markets.
Merchant banking provides a wide range of financial services including project counseling, loan syndication, issue management, underwriting public issues, portfolio management, advisory services for mergers and acquisitions, and offshore finance. They originate from merchants financing foreign trade in London and now require authorization from the Securities and Exchange Board of India (SEBI) according to capital adequacy and conduct regulations to protect investors. Merchant bankers play an important role in facilitating the raising of capital for corporate and government entities.
This presentation include Introduction, Origin, Indian scenario, Definition, Growth, category ,Prospectus, Function, Quality Problem and Guideline for Merchant Banking.
From the point of choosing the appropriate business structure to the scope and extent of necessary contracts, there are numerous legal issues to address when starting a company. While certain legal issues may even bring a start-up to a grinding halt if neglected, there are many others that are possible to be handled with ease, provided you have the right information to make timely decisions. Given their importance across sectors, the following issues and details will be covered in “Legal For Startups”.
• Legal Aspects for Starting Up:
• Contractual safeguards:
• Employees and workplace regulations:
• Data Protection
Merchant banking has evolved over centuries from Italian grain traders in the Middle Ages to modern financial institutions. Originally, merchant banks financed international trade and helped establish colonies for European powers. Today, merchant banks provide a range of financial services including raising capital, managing debt and equity offerings, underwriting public issues, loan syndication, and more. In India, merchant banking activities began in 1967 and have expanded significantly since, with over 1450 merchant bankers registered with SEBI, including public and private sector institutions.
The document provides an overview of accounting concepts including:
- Accounting involves recording, classifying, and interpreting financial transactions and events to provide interested parties with relevant financial information.
- Managerial accounting provides internal analysis and information to assist managers with decision making, while financial accounting generates external reports for parties outside the organization.
- Key financial statements include the balance sheet, income statement, and statement of cash flows, which are analyzed using financial ratios.
The document discusses the roles of merchant banks and underwriters in India. It begins by providing a brief history of merchant banking, noting it started in Italy and later spread to other European countries and the US. It then outlines some of the key functions of merchant banks, such as providing commercial banking services, long-term loans, and underwriting stocks. Next, it discusses the underwriting process, including different types of underwriting agreements and regulations around underwriting in India. It concludes by emphasizing the importance of underwriters and merchant banks in facilitating capital raising and protecting investor interests.
1. Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and insurance for a fee.
2. Some key functions of merchant banking include project counseling, loan syndication, issue management, portfolio management, capital restructuring services, and arranging working capital finance.
3. Merchant bankers are also involved in public issues, lease financing, venture capital funding, and helping companies raise public deposits.
The document discusses various topics related to initial public offerings (IPOs), investment banking, and financial restructuring. It describes the key steps in the IPO process, including selecting an investment banker, filing with the SEC, determining a price range, conducting a roadshow, and setting the final offer price. It also discusses how IPOs are priced, the book building process, potential costs and returns, and reasons why companies may consider going public or private.
Research on Model of the Financing Contract by Introducing the Entrepreneur’s...inventionjournals
ABSTRACT:In view of the allocation of cash flow rights and control rights in venture capital firms, a financing contract model is set up by introducing the entrepreneur’s self-owned capital in this paper. This paper analyzes the affecting factors and mechanism to the allocation of cash flow rights and control rights, shows the relationship between cash flow rights and control rights, gives the bargain intervals of the entrepreneur and the venture capitalist about the allocation of cash flow rights and control rights. It is shown that the more the entrepreneur’s self-owned capital and the higher the venture capitalist’s evaluation of the venture project and the ability of the entrepreneur, the fewer cash flow rights and control rights the venture capitalist will want; the relationship between cash flow rights and control rights of the venture capitalist is complementary but not corresponding, so the result provides a theoretical explanation for Kaplan and Stromberg’s empirical researches about the disproportion between cash flow rights and control rights in venture capital firms.
Merchant banking provides a combination of banking and consultancy services to clients. It assists companies with financial, marketing, managerial, and legal matters from starting a business through ongoing operations. Merchant banks deal primarily in international finance and business loans for companies. They specialize in international trade and serve multinational corporations. Unlike investment banks, merchant banks do not provide regular banking services to the general public. In India, the need for merchant banking grew with the rapid expansion of the primary market for stock issues.
The document discusses the role of merchant banks in India. It begins by defining merchant banking as financial institutions that provide services related to issuing securities, such as preparing prospectuses and advising on corporate finance issues. It then outlines several key services provided by merchant banks, including corporate counseling, project counseling, credit syndication, issue management and underwriting, and portfolio management. Merchant banks play an important role in raising capital and advising corporations.
Front Office Investment Banking Process - Investment Banking UniversitySvitlana Herlache
Learn the front office investment banking process from Investment Banking University. It teaches you how to become an investment banker at www.InvestmentBankingU.com #investmentbanking #investmentbanker #finance
This chapter introduces financial intermediaries such as commercial banks, savings and loans associations, investment companies, insurance companies, and pension funds. Their main function is to provide an inexpensive flow of money from savers to investors and borrowers. Financial intermediaries obtain funds by issuing financial claims and then invest those funds in loans or securities. This provides indirect investment for participants who hold the financial claims. Financial intermediaries provide maturity intermediation by transforming longer-term assets into shorter-term financial claims, reduce risk via diversification, reduce contracting and information costs, and provide payment mechanisms.
Merchant Banking - Indian Corporate Market, Clause 49 & Masala BondsAbhijeet Deshmukh
A comprehensive presentation on merchant banking. It starts with Indiann corporate bond market and go on to basics of merchant banking and it digs deep into merchant banking activity. It also has few slides on Clause 49 (Corporate governance) and ends with latest topic Masala Bonds
Merchant banking provides various financial services including investment banking, portfolio management, underwriting public offerings, and mergers and acquisitions advice. It originated in London when banks helped finance foreign trade and raise funds for developing countries. In India, merchant banking grew with the establishment of banks like Grindlays and Citibank in the 1960s-1970s. Merchant banks operate under regulations set by the Securities and Exchange Board of India that classify banks by the types of services they can provide and require minimum capital levels. They must obtain authorization, follow code of conduct guidelines, and contribute to the market by channelizing capital and ensuring regulatory compliance.
The document discusses the history and evolution of merchant banking in India. It provides details about modern merchant banking services, categories of merchant bankers based on net worth, and differences between merchant banks and commercial banks. Key points covered include that merchant banking originated in Italy and France in the 17th-18th centuries and was introduced to India through Grindlays Bank in 1967. Modern merchant banks provide services like management advising, underwriting, and portfolio management.
The document discusses the history and functions of merchant banking in India. It begins by defining merchant bankers and non-bank financial institutions. It then outlines the origins of merchant banking in London and how merchant bankers helped develop underdeveloped countries and domestic business. Over time, merchant bankers formed associations and began offering more services. The functions of merchant bankers grew to include corporate counseling, project counseling, loan syndication, issue management, and underwriting. Merchant banking gained prominence in India in the 1980s during a boom in new stock issues.
The document discusses key aspects of company directorship under the Indian Companies Act 2013, including:
1. Directors are appointed by the company's articles, shareholders, existing directors or third parties to manage the company's affairs.
2. Directors must obtain a Director Identification Number (DIN) and can be removed by shareholders, the central government or courts.
3. The document outlines the duties and liabilities of directors, such as ensuring compliance with the company's objectives and applicable laws.
The document outlines the syllabus for a course on Merchant Banking and Financial Services. The syllabus covers 5 units: (1) an introduction to the Indian financial system and merchant banking, (2) issue management, (3) other fee-based management services, (4) fund-based financial services including leasing and consumer credit, and (5) other fund-based services including venture capital. Each unit covers various topics and functions within that area of merchant banking and financial services.
Merchant banking provides non-fund based financial services like advising on mergers and acquisitions, underwriting securities issuances, and portfolio management. It originated in Italy and England in the 12th-18th centuries and was formally introduced to India in 1967. Merchant banking plays an important role in the growing Indian economy by facilitating corporate fundraising and restructuring, project financing, and connecting companies to capital markets.
Merchant banking provides a wide range of financial services including project counseling, loan syndication, issue management, underwriting public issues, portfolio management, advisory services for mergers and acquisitions, and offshore finance. They originate from merchants financing foreign trade in London and now require authorization from the Securities and Exchange Board of India (SEBI) according to capital adequacy and conduct regulations to protect investors. Merchant bankers play an important role in facilitating the raising of capital for corporate and government entities.
This presentation include Introduction, Origin, Indian scenario, Definition, Growth, category ,Prospectus, Function, Quality Problem and Guideline for Merchant Banking.
From the point of choosing the appropriate business structure to the scope and extent of necessary contracts, there are numerous legal issues to address when starting a company. While certain legal issues may even bring a start-up to a grinding halt if neglected, there are many others that are possible to be handled with ease, provided you have the right information to make timely decisions. Given their importance across sectors, the following issues and details will be covered in “Legal For Startups”.
• Legal Aspects for Starting Up:
• Contractual safeguards:
• Employees and workplace regulations:
• Data Protection
Merchant banking has evolved over centuries from Italian grain traders in the Middle Ages to modern financial institutions. Originally, merchant banks financed international trade and helped establish colonies for European powers. Today, merchant banks provide a range of financial services including raising capital, managing debt and equity offerings, underwriting public issues, loan syndication, and more. In India, merchant banking activities began in 1967 and have expanded significantly since, with over 1450 merchant bankers registered with SEBI, including public and private sector institutions.
The document provides an overview of accounting concepts including:
- Accounting involves recording, classifying, and interpreting financial transactions and events to provide interested parties with relevant financial information.
- Managerial accounting provides internal analysis and information to assist managers with decision making, while financial accounting generates external reports for parties outside the organization.
- Key financial statements include the balance sheet, income statement, and statement of cash flows, which are analyzed using financial ratios.
The document discusses the roles of merchant banks and underwriters in India. It begins by providing a brief history of merchant banking, noting it started in Italy and later spread to other European countries and the US. It then outlines some of the key functions of merchant banks, such as providing commercial banking services, long-term loans, and underwriting stocks. Next, it discusses the underwriting process, including different types of underwriting agreements and regulations around underwriting in India. It concludes by emphasizing the importance of underwriters and merchant banks in facilitating capital raising and protecting investor interests.
1. Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and insurance for a fee.
2. Some key functions of merchant banking include project counseling, loan syndication, issue management, portfolio management, capital restructuring services, and arranging working capital finance.
3. Merchant bankers are also involved in public issues, lease financing, venture capital funding, and helping companies raise public deposits.
The document discusses various topics related to initial public offerings (IPOs), investment banking, and financial restructuring. It describes the key steps in the IPO process, including selecting an investment banker, filing with the SEC, determining a price range, conducting a roadshow, and setting the final offer price. It also discusses how IPOs are priced, the book building process, potential costs and returns, and reasons why companies may consider going public or private.
Research on Model of the Financing Contract by Introducing the Entrepreneur’s...inventionjournals
ABSTRACT:In view of the allocation of cash flow rights and control rights in venture capital firms, a financing contract model is set up by introducing the entrepreneur’s self-owned capital in this paper. This paper analyzes the affecting factors and mechanism to the allocation of cash flow rights and control rights, shows the relationship between cash flow rights and control rights, gives the bargain intervals of the entrepreneur and the venture capitalist about the allocation of cash flow rights and control rights. It is shown that the more the entrepreneur’s self-owned capital and the higher the venture capitalist’s evaluation of the venture project and the ability of the entrepreneur, the fewer cash flow rights and control rights the venture capitalist will want; the relationship between cash flow rights and control rights of the venture capitalist is complementary but not corresponding, so the result provides a theoretical explanation for Kaplan and Stromberg’s empirical researches about the disproportion between cash flow rights and control rights in venture capital firms.
Merchant banking provides a combination of banking and consultancy services to clients. It assists companies with financial, marketing, managerial, and legal matters from starting a business through ongoing operations. Merchant banks deal primarily in international finance and business loans for companies. They specialize in international trade and serve multinational corporations. Unlike investment banks, merchant banks do not provide regular banking services to the general public. In India, the need for merchant banking grew with the rapid expansion of the primary market for stock issues.
The document discusses the role of merchant banks in India. It begins by defining merchant banking as financial institutions that provide services related to issuing securities, such as preparing prospectuses and advising on corporate finance issues. It then outlines several key services provided by merchant banks, including corporate counseling, project counseling, credit syndication, issue management and underwriting, and portfolio management. Merchant banks play an important role in raising capital and advising corporations.
Front Office Investment Banking Process - Investment Banking UniversitySvitlana Herlache
Learn the front office investment banking process from Investment Banking University. It teaches you how to become an investment banker at www.InvestmentBankingU.com #investmentbanking #investmentbanker #finance
This chapter introduces financial intermediaries such as commercial banks, savings and loans associations, investment companies, insurance companies, and pension funds. Their main function is to provide an inexpensive flow of money from savers to investors and borrowers. Financial intermediaries obtain funds by issuing financial claims and then invest those funds in loans or securities. This provides indirect investment for participants who hold the financial claims. Financial intermediaries provide maturity intermediation by transforming longer-term assets into shorter-term financial claims, reduce risk via diversification, reduce contracting and information costs, and provide payment mechanisms.
The document discusses several studies related to initial public offerings (IPOs) and how the timing of IPOs relates to market conditions. Specifically:
- One study analyzed a 20-year time series of US IPOs, including periods of recession, and found that IPOs occurring during "hot markets" differ from those in "cold markets." Firms going public during hot markets tend to have lower productivity and profitability after the IPO.
- Another study investigated whether the survival probability and duration differs between IPOs in hot versus cold markets. It also examined if characteristics of IPOs in the first half of a hot market ("pioneers") differ from those in the second half ("
Idea Cellular plans to raise between Rs. 1,700-2,000 crore through an initial public offering (IPO) on the stock exchange. It has appointed investment banks like J.P. Morgan and Merrill Lynch to manage the offering, which is expected to be launched by the end of January. Under SEBI rules, a minimum of 10% of shares must be offered to the public. Idea Cellular will sell between 10-12% of shares, expected to be at a 10-20% premium to the most recent private placement valuation of Rs. 15,000 crore. The IPO proceeds will be used to fund Idea Cellular's capital expenditures for expansion. After the IPO, the
Marco Sambucci is the head of financial planning at Mosaic Money Management, a boutique wealth management firm. He warns that many people may be left financially destitute due to banks withdrawing financial advice from the high street. Sambucci sees opportunities for smaller firms like Mosaic to provide holistic financial advice and concierge services to clients with over £500,000 in assets, who are underserved by large banks. He argues that large firms will struggle with regulatory issues, creating space for boutique firms to grow their client bases and assets under management.
Merchant bankers provide specialized financial services like corporate finance, portfolio management, and other banking services. They help with corporate counseling, project financing, issue management, and more.
For hire purchase transactions, merchant banks pay income tax on the income from hire installments, not the whole rental amount. Sales tax is considered regressive as lower income individuals spend a greater percentage of their income on taxable items. Personal income tax is levied on an individual's total income with some deductions allowed.
The process for a public issue of securities by a new company involves forming an experienced team, drafting financial statements and prospectus over 12 months, filing with regulatory agencies, and going public once approved. Personal factors like age, income
Eco-Products, Inc. was founded in 1990 by Steve Savage and his father to provide eco-friendly paper and janitorial supplies. In the early years through 2003, it operated as a small lifestyle business out of Boulder, Colorado, relying on friends and family for funding. Margins were low and growth was slow as consumers were slow to adopt eco-friendly products. By 2007, Eco-Products had expanded significantly but was still losing money, burning through over $3 million in cash that year according to its financial statements.
Crowdfunding has emerged as a new way for businesses and real estate projects to raise capital online from many individual investors. There are four main types of investment crowdfunding - donation, rewards, debt, and equity-based. Some states have also implemented their own intrastate crowdfunding regulations to facilitate these types of online investment opportunities. Real estate projects in particular are seen as a natural fit for crowdfunding, as it allows communities to invest in local developments. However, investors must still carefully evaluate each crowdfunding platform and investment opportunity to fully understand the risks and ensure their interests are protected.
The document provides an overview of securitization and the mortgage-backed securities market. It discusses how companies fund projects through equity and debt, and introduces securitization as a way to pool similar mortgage loans and issue securities backed by the pooled loans. It then covers the basics of fixed income markets, how mortgage payments are calculated, the process of issuing agency-conforming and non-conforming mortgage-backed securities, and the major investors in the MBS market like pension funds, insurance companies, and GSEs.
What We DoIntroductionCreation of the SECOrganization of the.docxmecklenburgstrelitzh
What We Do
IntroductionCreation of the SECOrganization of the SECLaws That Govern the Industry
Introduction
The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.
As our nation's securities exchanges mature into global for-profit competitors, there is even greater need for sound market regulation.
And the common interest of all Americans in a growing economy that produces jobs, improves our standard of living, and protects the value of our savings means that all of the SEC's actions must be taken with an eye toward promoting the capital formation that is necessary to sustain economic growth.
The world of investing is fascinating and complex, and it can be very fruitful. But unlike the banking world, where deposits are guaranteed by the federal government, stocks, bonds and other securities can lose value. There are no guarantees. That's why investing is not a spectator sport. By far the best way for investors to protect the money they put into the securities markets is to do research and ask questions.
The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.
The result of this information flow is a far more active, efficient, and transparent capital market that facilitates the capital formation so important to our nation's economy. To insure that this objective is always being met, the SEC continually works with all major market participants, including especially the investors in our securities markets, to listen to their concerns and to learn from their experience.
The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud.
Crucial to the SEC's effectiveness in each of these areas is its enforcement authority. Each year the SEC brings hundreds of civil enforcement actions against individuals and companies for violation of the securities laws. Typical infr.
Securities Crowdfunding for Intermediaries (Series: Crowdfunding)Financial Poise
This webinar addresses crowdfunding portals and intermediaries. This episode begins with a basic overview of the various methods of crowdfunding, from donation and rewards based, to intra-state equity, debt, and finally securities based crowdfunding under Titles II, III and IV of the JOBS Act. Once those differences are understood, the webinar focuses on the need for intermediaries, the role that they can and sometimes must play, followed by a discussion on how the market has matured and where we see the market going in the online capital space. This webinar also discusses the risks and future of these intermediaries with the advent of the ICO and token distribution events.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/securities-crowdfunding-for-intermediaries-2021/
The document provides tips for revising essays, including requesting multiple revisions from writing services to ensure satisfaction. It discusses registering for an account, completing an order form with instructions and sources, and choosing a writer based on qualifications and reviews. The service promises original, high-quality content and refunds for plagiarized work.
Impact of the JOBS Act on the IPO Market (Series: THE JOBS ACT - A RETROSPECT...Financial Poise
The document discusses the impact of the JOBS Act on the IPO market. It summarizes key aspects of the JOBS Act that make the IPO process easier for emerging growth companies, including:
1) Allowing emerging growth companies to "test the waters" by communicating with qualified institutional buyers and accredited investors to determine interest in a potential offering.
2) Permitting emerging growth companies to submit draft registration statements confidentially for SEC review before publicly filing.
3) Reducing various disclosure and reporting requirements for emerging growth companies for up to five years after going public.
The JOBS Act helped stimulate the IPO market by creating an "IPO on-ramp" for smaller companies through these
The document discusses various aspects of the capital market in India including merchant banking, underwriters, stock brokers, and credit rating agencies. It provides definitions and regulations related to these services. It notes that capital market intermediaries play an important role in the economy by facilitating long-term borrowing and lending. The regulatory framework in India helps control these intermediaries and has established a vibrant market structure.
Similar to Global custodian--the Architecture of Trust (14)
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
1. When Larry Smith and Robert Birnbaum decided to start Greenwich,
Connecticut-based hedge fund Third Wave Global Investors, their reasons were
not that different from other entrepreneurs’ motivations. Both had extensive
experience—they had worked together for 15 years at JPMorgan and Credit
Suisse Asset Management with Smith on the investment side and Birnbaum on
the business side. Both desired to excise themselves from large organizations.
And finally—just like someone who opens a corner bakery or java joint—they
saw a gap in the marketplace and believed they could fill it better themselves.
“We thought we had something to offer on the product side, which is where the
concept of Third Wave came from,” says Birnbaum, seated at a long conference
table in the fund’s nearly year-old office. “The first wave of hedge fund invest-
ing was going short in order to protect capital. The second wave was to get a
good investment idea and leverage the heck out of it. The third wave is putting
the risk and return side together and creating more consistent returns through a
combination of quantitative and qualitative techniques.”
So it was in early 2004 that Birnbaum, who is the firm’s president and chief
operating officer (COO), was leaving his post as Columbia Management’s head
of institutional business as it was being acquired by Bank of America. (“It was
going from a large firm to a huge firm,” he says.) And Smith, Third Wave’s chair-
man and chief investment officer (CIO), had just ended a four-year stint as CIO
at Credit Suisse Asset Management, which was being folded into CSFB. Wanting
to do something different and invest on the years of intellectual capital earned at
these established institutions, they founded Third Wave in June 2004.
In the soon-to-be-
regulated hedge
fund industry,
setting up shop
means selecting
the right providers
to attract the
right investors.
This is how Third
Wave did it
Illustration by Sam Webber
Architecture
The
of Trust
Global Custodian 2005
36-39 Fund Arch_p6fn.indd 37 10/14/05 10:20:53 AM
2. Global Custodian 2005
But before the first trade could be made Third Wave had to set
up shop, and the task of fund architecture diverged from typical
business endeavors. The two had to establish an efficient and reg-
ulatory compliant vehicle that could also deliver the desired port-
folio to investors. “This is the general balance you must attain,”
says Birnbaum, whose fund has had positive returns for 10 of the
past 11 months, growing from $11 million to $47 million.
Completing The Vendor Puzzle
“After incorporating the fund, we spent those next few months
on fund architecture: getting the firm set up and getting our
infrastructure set up,” Birnbaum says. This ranged from the
mundane—office supplies and workable telephone lines—to the
mandatory. Birnbaum and Smith also wanted to be able to offer
the fund to US and non-US investors, but recognized the need
to build up a track record first. “The idea was, let’s prove our
concept and show this consistent pattern of returns, and let’s
get all the infrastructure and architecture issues taken care of
before we open the fund to outside investors,” he says.
The first challenge was to put in place three basic building
blocks: a fund, a fund adviser and a partnership. Third Wave
hired law firm Seward & Kissel to set up the fund structure,
which included the creation of three entities: a US limited part-
nership (which is the actual fund), an investment adviser (the
operating firm that pays rent, owns the furniture and, impor-
tantly, trades the portfolio) and a general partner (who controls
the firm and, in this case, is Smith and Birnbaum). The fund
also selected an auditor, PricewaterhouseCooper (PwC), whose
role will not become imperative for the fund until it completes
its first year, when, at the end of 2005, PwC will issue the fund’s
official financial statement and valuation. However, it was still a
necessary decision to make during the fund architecture phase.
With the three entities in place in September 2004, Birnbaum
and Smith began trading with their own money in Birnbaum’s
basement on a pingpong table-turned-trading desk with
dedicated computer and telephone connections. “We were fully
functional,” he recalls with a laugh.
To fulfill their longer-term ambition of opening the fund to
outside investors, Birnbaum and Smith called back Seward &
Kissel to provide offshore counsel and structure for two new
vehicles: an offshore fund in the Cayman Islands and a master
fund that the limited partnership and Cayman operation could
both invest in. “The master fund contains all the assets of both
funds and is where we trade the portfolio,” Birnbaum says.
“US investors come into the limited partnership [LP], but the LP
“When setting up, you don’t have to
have all your resources inside the
firm. In fact, you want to have most
of them done outside to allow you
to focus on the product and working
with clients”
sends its assets to the master fund.”
For Third Wave, it was vital to make choices that gave investors
confidence: experienced vendors that were an appropriate match
for the fund and that would attract potential investors performing
due diligence on the fund.
So first came the search for a hedge fund administrator, which,
according to Birnbaum, is a key piece of the vendor puzzle.
“Choosing an HFA is a big deal,” he says. “All the leading
firms perform the same functions—they have to—but for us the
differentiating factor was the level of service and the cost of
the administrator. That cost is borne by the fund, so if its too
high, it can hurt returns.” Third Wave chose Olympia Capital
Management. “Olympia had the right level of cost and service,
which were our main criteria” he says. Olympia administers the
master fund as well as the two feeder funds and then allocates
the returns to the various accounts.
Attentiveness was just as important to the two when it came to
choosing prime brokers. Third Wave selected Citigroup as its
primary broker and Fimat as its futures prime broker. “There
are many firms that could execute our trades,” he says, “but
these two made it very clear that they wanted our business and
would be committed to us even while we were small.”
With vendors in place, the legal entities created and a three-
month track record of trading, Smith and Birnbaum found a
more permanent space for Third Wave in December 2004. “In
terms of space, we wanted a place that was the right size for us,”
Birnbaum says, “but it is often difficult to predict growth when
you are starting.” With this in mind, Smith and Birnbaum found
an office in Greenwich already built and available to them on a
three-year basis, as opposed to a five-year or even decade-long
lease. “Maybe we will need more space later, but for three years
we could definitely envision ourselves here.”
Once they had the space, it was time to fill it. From office
furniture to the company letterhead, someone had to order it.
“There are all these small-business types of things that need to
get done in order to enable you to function,” Birnbaum says,
“But it was important for us to make sure we had the high-level
infrastructure done.”
‘The SEC Is Going To Come Visit’
These days, high level infrastructure includes regulatory com-
pliance. As the hedge fund industry has grown—there are now
more than 8,000 hedge funds representing an industry worth
$1.025 trillion, according to Hedge Fund Research (HFR), a
research group in Chicago, Ill.—and sought institutional
money, it has attracted the attention of regulators. From Feb-
ruary 1, 2006, the US Securities and Exchange Commission
(SEC) will require all US hedge fund managers—with few ex-
ceptions—to be registered with the it as investment advisers
under the 1940 Investment Company Act.
“The big issue in fund architecture these days is SEC registration,”
Birnbaum says. Nascent managers may have an advantage over
their established counterparts if they choose to tackle these issues
36-39 Fund Arch_p6fn.indd 38 10/14/05 10:20:53 AM
3. during the architectural phase and, like Third Wave, complete
the task so they can focus on investors. “We voluntarily regis-
tered in March,” he says. “And we basically think it is a good
idea for the industry—Larry and I are both very used to working
in a registered environment. It wasn’t a scary thing for us.
“Registration itself is an easy thing to do, but as a registered ad-
viser you must have a more detailed set of procedures that have
to be written down and verified,” he adds, sliding an innocuous-
looking, three-ring binder across the buffed table. The white
notebook is a compliance manual (“Which is about as much
fun as it sounds,” Birnbaum jokes) that compiles every proce-
dure from how the fund allocates a trade, reports performance
and deals with brokers. While many firms start with somebody
else’s manual and go from there, a compliance manual has to be
tailored to each individual firm. “This is an important process—
and therefore an important part of fund architecture—because
eventually the SEC is going to come visit, and it will want indi-
cation that you have followed the procedures,” he says.
Though the responsibility of compliance falls on the firm (Birn-
baum appointed himself chief compliance officer), there are a
number of ways that a hedge fund administrator can help a
fund, Birnbaum says. “We have to ensure they do it right,” he
says, “but together we can get it done.” One of those measures
where an administrator can help is the anti-money laundering
program, a requirement extended to investment companies in
2002 under the US PATRIOT Act, following recommendations
by the SEC, the US Treasury and the Federal Reserve later that
year. “Our hedge fund administrator checks our investor list
against the government’s list,” he says, “to guarantee the money
we are taking is not from illegal sources.”
Construction Continues
Fund architecture is not a finite process. Like homeowners who
make repairs and improvements on their investment, fund man-
agers need to remain alive to possible improvements to their
fund. “To us, everything that is not investment oriented is part
of fund architecture,” Birnbaum says. “Investments are prima-
ry, but then we must make sure we can serve our clients proper-
ly,” he says. This means regular communication with investors
(monthly letters and quarterly conference calls) as well as with
prospective investors (due diligence and sample questionnaires).
As part of a keen customer-management system, Third Wave
maintains a list and history of all accounts and clients, track-
ing materials sent to and from them. To reinforce this dialogue
with investors, Third Wave is launching a password-protected,
informational Web site, not to attract new clients, but to serve
existing investors.
Of course, it is always a good idea to know when to call in the
professionals. As COO, Birnbaum says he is aware of all the
qualified people available to funds. “When setting up, you don’t
have to have all your resources inside the firm. In fact, you want
to have most of them done outside to allow you to focus on the
product and working with clients.”
Although oversight of outsourced functions is not a trivial
responsibility—ultimately Third Wave is responsible—keeping
resources such as administration outside of the fund increases
transparency and allows the fund to maintain a lean staff: Third
Wave operates with a total staff of six. “We don’t think we need
to grow past that for a long time,” Birnbaum says. “Starting
this firm with our own resources caused us to want to keep our
fixed expense base as low as we can while we’re growing the
firm.” And it has been growing. Along with the $37 million
increase in assets, Third Wave has brought in new investors
every month since it opened.
Birnbaum attributes the months of growth to positive fund
returns, experience and sound fund architecture. “As Larry
likes to say, the biggest surprise has been that there haven’t been
any surprises,” he says. “We planned out everything we needed.
Larry and I have had a lot of experience, and we knew what we
wanted and how things ought to be done.” The biggest obstacle,
he observes, was launching the fund in a challenging capital-
raising environment. “While asset flows in hedge funds have
slowed or turned negative, we feel very good that we’ve grown
and attracted new assets,” he says. This confidence is reinforced
by potential clients who have told Third Wave that the fund is
on their radar. “We have many prospective clients who say, ‘We
want to place money with you. You are the next manager on our
list, but we are currently having redemptions,’” Birnbaum says.
“There’s not a lot we can do about that, but we are confident in
our product. We think hedge funds are here to stay.”
And it appears Third Wave is as well. Birnbaum and Smith are
introducing a new share class with double the exposure—twice
the gains and twice the losses. “The existing fund has done
well and been so stable that some potential investors came to
us and asked us to crank it up,” he says. Fund architecture
re-enters the picture, he adds, and it is back to the lawyers, the
administrators and the brokers to aid Third Wave in creating
this second share class. It should be up and running by year’s
end, further entrenching the two in the hedge fund industry.
“Yes, we’re in it for the long term,” Birnbaum says, “and from
a business perspective we’re very confident of even greater
success.”
—Alexandra DeLuca
Robert Birnbaum,
president and
COO of Third Wave:
“To us, everything
that is not investment
oriented is part of
fund architecture.
Investments are
primary, but then we
must make sure we
can serve our clients
properly.”
36-39 Fund Arch_p6fn.indd 39 10/14/05 10:20:56 AM