Carnegie Investment Bank facts for kids
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| Privately held company | |
| Industry | Banking Financial services |
| Founded | 1803 |
| Founder | David Carnegie, Sr. |
| Headquarters | Stockholm,  Sweden |
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Key people
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Anders Johnsson, Chairman Björn Jansson, CEO |
| Products | Investment banking Brokerage Equity research Wealth management |
| AUM | SEK 166 billion (2020) |
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Number of employees
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600 (2Q 2019) |
Carnegie Investment Bank AB is a company from Sweden that helps people and businesses with their money. It's a type of financial services group. They help with things like buying and selling stocks and bonds for others. This is called brokerage. They also help companies with big money decisions, which is investment banking. Plus, they help wealthy people manage their money, known as private banking.
Carnegie was started way back in 1803. Its main office is in Stockholm, Sweden. They also have offices in other Nordic countries, and in London, New York, and Luxembourg.
The company is known for being a leader in several areas. This includes helping people understand stocks (equities research) and buying/selling them. They also advise companies on big financial moves (corporate finance). And they manage money for individuals (private wealth management).
Carnegie works with many different types of clients. These include large investment groups, companies, and even governments. They also help very wealthy individuals. In 2018, Carnegie made about 2.4 billion Swedish Kronor in revenue. By mid-2019, they had around 600 employees.
After a big financial crisis in 2008, the Swedish government took over Carnegie Investment Bank AB. This happened on November 10, 2008. But in May 2009, two investment companies bought the bank. These were Altor Equity Partners and Bure Equity. Their goal was to make Carnegie the top independent investment bank in the Nordic region again.
Contents
History of Carnegie
How it Started
Carnegie began as a trading company in 1803. It was founded by David Carnegie, Sr., who was from Scotland. He started D. Carnegie & Co AB in Gothenburg, Sweden.
Later, David Carnegie Sr.'s nephew, David Carnegie Jr., took over the company. David Carnegie Jr. eventually went back to Scotland. He left the company to Oscar Ekman. By then, the company was involved in making beer (brewing) and sugar.
When David Carnegie Sr. passed away in 1890, Oscar Ekman got many shares. This made him the main owner of the company. In 1907, Ekman's son-in-law, Karl Langenskiöld, took charge. At this time, the brewing and sugar businesses were sold off.
After a financial downturn known as the Kreuger crash, Langenskiöld started a new business. It was a brokerage firm called Bankirfirman Langenskiöld. This firm is the foundation of what Carnegie is today.
Carnegie's Journey
In 1980, the company got its original name back: Carnegie. At this time, a financier named Erik Penser was the main owner. In 1988, another bank, which later became Nordea, took over Carnegie. Carnegie stayed with them until 1994.
Then, a new company called Carnegie Holding bought the bank. This new holding company was mostly owned by a British bank called Singer & Friedlander. The rest was owned by Carnegie's own employees.
In 2001, Carnegie Holding merged with D. Carnegie & Co. This made D. Carnegie & Co the main company of the Carnegie Group. The company was listed on the Stockholm Stock Exchange. This means its shares could be bought and sold by the public. But it was later removed from the stock exchange when the government took it over. Since 2004, the business has been known as Carnegie Investment Bank.
How Carnegie is Organized
Carnegie is split into three main parts, or divisions:
- Securities: This part helps people understand and trade stocks. They do equity research, which means studying companies to see if their stocks are a good buy. They also handle sales & trading, which is buying and selling stocks for clients.
- Investment Banking: This division helps companies with big financial decisions. They give corporate finance advisory, like advice on mergers or buying other companies. They also help companies raise money by selling new stocks or bonds.
- Private Banking: This part helps wealthy individuals manage their money. They offer advice and services to grow and protect their wealth.
Who Owns Carnegie Now
As mentioned, the economic crisis of 2008 caused problems for Carnegie. To stop it from going bankrupt, the Swedish National Debt Office took over the bank. This happened on November 10, 2008.
The bank had lent too much money to one client. This went against the rules set by the Swedish financial authority. In May 2009, the private equity company Altor Equity Partners and the investment company Bure Equity bought Carnegie.
On September 3, 2010, Carnegie announced another big step. They decided to buy HQ Bank. This was a smart move to make their private banking division even stronger.
See also
- Carnegie Art Award
