merchant bank

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Merchant bank

A British term for a bank that specializes not in lending out its own funds, but in providing various financial services such as accepting bills arising out of trade, underwriting new issues, and providing advice on acquisitions, mergers, foreign exchange, portfolio management, etc.

merchant bank

An investment bank that commits its own funds by taking a creditor position or equity interest in another firm. For example, a merchant bank may provide temporary financing for a leveraged buyout.

merchant bank

a BANK which offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance, in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have extended their interests variously into investment management, stockbroking, MARKET MAKING and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and share issues on behalf of corporate clients (see SHARE ISSUES) and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM, INVESTMENT BANK.

merchant bank

a BANK that offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have variously extended their interests into investment management, stockbroking, market-making (see MARKET MAKER) and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and SHARE ISSUES on behalf of corporate clients and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM.
References in periodicals archive ?
He eventually created his own Firm, Capital Corp Merchant Banking, where he syndicates and structures funding for top companies worldwide, all the while investing his own firm's funds into the projects.
To qualify for a specific merchant banking program, a typical client needs a gross margin of between 20 and 30 percent on its products and sales of at least $1 million a year.
The Board and the Treasury received a significant amount of useful information and comment that led us to revise in some important respects the rules that implement the merchant banking powers in the Gramm-Leach-Bliley Act.
We will also explore the possibility of expanding into related functions, including developing a merchant banking capability to assist in situations that require capital as well as advice and execution.
Revising the restrictions that apply to merchant banking investments held beyond the permissible holding period
Endeavour's venture-capital and merchant banking approach has created tremendous wealth for its shareholders," says Frank Holmes, CEO and chief investment officer at U.
171--What are the limitations on managing or operating a portfolio company held as a merchant banking investment?
Founded in 1996, the firm carries on centuries of honored merchant banking traditions, providing a comprehensive array of services to international private and state owned companies, including merchant banking, trade and project financing, strategic business development and professional business services.
It would allow merchant banking to continue to develop along the lines already evident in the industry and in the manner intended by the Congress.
Thus, Capital Corp Merchant Banking is pleased to announce that it has come into a funding agreement with its client where it will be restructuring the client's corporate debt as well as provide additional funding to help the company grow.
Merchant Banking is the internationally operating wholesale bank of Fortis.
0 million in financing from Socit Gnrale and DLJ Merchant Banking Partners and its affiliates.