Rising from the lowest depths: A Merchant’s Way of Life | Push Digits Chartered Accountants

Rising from the lowest depths: A Merchant’s Way of Life

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It is expected that traditional banks are going to be the in-thing again after the unfortunate efforts of investment banks and the likes

Personal connections and private finances just don’t cut it anymore for merchant banks. Once considered a powerful system of capital finance, merchant banks have turned to a disappointing state in the recent years. This is due to a sudden drop in profit that resulted from global bank companies forming massive investment banking sectors to create a universal shed of light for all those in need.

After this era of crisis, a new era of ushering is about to commence, as the value of marketing relationships is being emphasized upon again. This, of course, means that merchant banks are steadily climbing back up the corporate ranks.

The investment group called Samena Capital has started to focus on sub-continental equity on private levels, as well as in places, such as the Middle East, Asia, and North Africa. Kleinwort Benson Bank (KBB) is said to provide these places with a 40% stake from their sectors.

KBB was born from a very old merchant bank called Kleinwort Benson, and it was known for being the center point of managing assets, legal advising, supporting private banks and firms, and being an all-around influence in the corporate ladder.

Samena is once again taken as the main character of this story, since, after receiving the aforementioned stake in KBB, Samena aims to restore the main aspect of merchant banking: relationships. KBB will help in this regard by forming connections with previously untouched places, such as Hong Kong, London, and of course, Dubai.

Without the proper establishment of connection between the client and the seller, finance is not as good as it seemed to be. The Vice Chairman of Samena Capital, Shirish Saraf, stated Samena’s intention in using KBB to form a large connection of merchant banks with long lasting relationships.

Samena is not alone in this newly developing prospective. About twelve more international firms have shown interested in returning to the glorious days of merchant banking, and utilizing the new system of network and communication for the benefit of everyone.

In 2013, a merchant bank was formed in the UK by Edmond de Rothschild, a private banking group in Europe, through winning a regulatory approval. Just last year, the same was done by the former CEO of Barclays PLC, Robert Diamond. This gave birth to the new Atlas Merchant Capital, which has brought forward network-based marketing in New York.

Additionally, David Schamis, the former director of JC Flowers, is going to invest in this project. This man has been known to establish a vehicle banking investment called Atlas Mara. Ashish J. Thakkar, an entrepreneur of Mara Group, was the co-founder of this establishment and his connections in Africa has helped the process further.

Using all these examples as motivation, Saraf is positive about the new approach. Even though newer competitions will arise due to the renovation of merchant banking, the pros are certainly more than the cons. Besides, utilizing such an extensive network and building up a business from it would be the best strategy that can be adopted for the moment.


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