Merchant banks in the United States include Murdock Capital, Loeb Partners, U.S. Capital Advisors, HIC Financial and Goldman Sachs' merchant banking division. Most provide not only capital financing, but also financial advice to corporations, acting as an intermediary between small and mid-size companies and corporate investors. HIC Financial, headquartered in Baltimore, Maryland, focuses on newer companies that seek to grow, such as those in alternative energy production.Continue Reading
Loeb Partners, founded in 1931, touts its status as one of the last privately held merchant banks on Wall Street. While it is reported that many U.S.-based merchant banks provide capital assistance in response to a business' immediate need but don't offer the operational consulting or transaction assistance of full-service merchant banks, Murdoch, Loeb and others claim otherwise. Loeb prides itself on providing tailored advice to its long-term clients, and, as a private investment banking enterprise, Loeb is known to invest along with its clients. In 2013, Loeb was involved in the acquisition of Central Refrigerated Service, Inc. by Swift Transportation and works across a range of industries. According to Goldman Sachs, its merchant banking division raised over $82 billion of capital between 1986 and 2015 through its investment funds and, since 1991, $32 billion of capital through real-estate investments.
Merchant banking is not defined in U.S. banking and security laws; however, according to the FDIC, merchant banking refers to negotiated private investing in unregistered securities of private and pubic companies by financial institutions. Merchant banks also raise capital, provide advice on mergers and acquisitions and provide bridge loan financing in leveraged buy-outs.Learn more about Banks