Understanding Investment Banking and Martin Lustgarten

UPDATE: August, 31st, 2016

Martin Lustgarten has announced new business developments within his investment firm. See links below for details.

 

Investment Banks essentially provide funding and advisory services to individuals and corporate clients. The banks also engage in many trading activities either for clients or for their own behalf. Pure investment banks, also called boutique financial firms, are institutions that only offer financial services. They focus on deals that are mid-market or are located on certain specific geographies.

Owners of Investment Banks

Many American and European investment banks are publicly traded companies. Their shares are listed and traded on stock exchanges and any person who purchases these shares partly owns the bank. However, the true owners with decision making capabilities are investors who own large chunks of the banks’ shares. Major investors include wealthy individuals with large net worth, institutional investors, family groupings, government agencies or even the bank’s directors. Some investment banks, small in size, remain privately held and owned while others are structured like partnership businesses.

Clients of Investment Banks

Investment banks serve many clients in different capacities and sizes. These include:

1. Corporates

These are large companies that operate in different sectors of the economy. They have the capacity to raise large chunks of money that is invested in profitable ventures. For this reason, they require the services of investment banking institutions. The companies operate in sectors like construction, media, technology, food and drinks, chemicals as well as healthcare.

2. Funds

These are investment vehicles that pool together assets of different investors and invest the money using a specific investment strategy. They include hedge funds, private equity funds and pension plans.

3. Sovereigns

Include governments and quasi-governmental institutions.

4. Wealthy Individuals

These are people worth over 1 million dollars in investable assets.

Martin Lustgarten

Martin Lustgarten is a prominent investment banker who has gained widespread experience working in the industry for many years. He established his own investment banking firm called Lustgarten, Martin. The firm is based in Florida. Lustgarten acts as its Chief Executive Officer and is in charge of all its operations.

He is known to be very attentive to all his clients and ensures that they are accorded undivided attention. He also values sound investment advice that is well researched. Today, Martin Lustgarten is an avid social media enthusiast. He loves juggling and collecting vintage items.

Twitter: @mlustgarten2