Merchant banker facts for kids
Merchant banking is a special type of banking that also offers expert advice. Think of it as a mix of a bank and a helpful guide for businesses. These banks give advice and services to their clients on money matters, how to sell things (marketing), how to run their company (management), and even legal issues.
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What is Merchant Banking?
Merchant banks are like trusted partners for businesses. They offer many services to help companies grow and succeed.
How Merchant Banks Help Businesses
Merchant banks provide lots of useful services. They can help a person who wants to start a new business. They also help companies find and collect the money they need to operate or expand.
They can guide businesses on how to grow bigger or update their operations with new technology. If a business is struggling, merchant banks can help it get back on track. They also assist companies with important tasks like listing their shares on the stock exchange or buying and selling parts of other companies.
A Look at History
In the 1800s, as trade and industries grew in the United States, powerful new private merchant banks appeared. A famous example was J.P. Morgan & Co.. These banks were often owned by families or a small group of partners.
However, as the world of money became much larger in the 1900s, these family-owned banks sometimes didn't have enough resources. Big Corporations started to take over the banking business. Because of this, merchant banking activities became just one part of what modern, larger banks do.
Famous Merchant Banks
Here are some examples of merchant banks, both from the past and present:
- Barings Bank
- Berenberg Bank
- Bethmann Bank
- BDT Capital Partners
- N. M. Rothschild & Sons
- George Peabody & Co.
- Kleinwort Benson
- Kempen & Co
- Guinness Mahon
- Schroders
- J.P. Morgan
- Lazard & Cie
- SG Warburg
- Hope & Co.
- Defoe Fournier & Cie.
- Close Brothers
- Morgan Grenfell & Co.
- Greenhill & Co.
- Guggenheim Partners
- Robert Fleming & Co.
- Kuhn, Loeb & Co.
- Hambros Bank
- Hill Samuel
- Brown, Shipley & Co.
- Brown Brothers Harriman & Co.
- Samuel Montagu & Co.
- H. J. Merck & Co.
