Investment banks are a lot more different from commercial and retail banks as investment banks do not accept deposits like the former. Investment banks assist individuals, corporations and governments to raise capital. In so doing, investment banks act as the clients’ agent in the issuance of securities. Besides, investment banks can help companies involved in mergers and acquisitions. Investment banks also provide these companies with ancillary services like trading of derivatives, market making, and equity securities.
Investment banking activities are front, middle, and back office. Front office involves a revenue generating role. Within the front office, there are two main areas, that is, investment banking and markets. In investment banking, world’s largest organizations are advised on mergers acquisition and a broad array of fundraising methodologies. On the other hand, markets involve sales, trading, structuring, and research. Traditionally, investment banks practiced corporate finance. Corporate finance involves helping customers to raise funds in capital markets and advise on mergers and acquisitions (M&A). Mergers and acquisitions include investors to subscribe to a security issuance. Investment banks also coordinate bidders and negotiate with a merger target on behalf of the investor.
The investment banking divisions are product coverage and industry coverage groups. Industry coverage groups only focus on a particular industry. Besides, they maintain the relationship with corporations within the same industry thereby bringing business to the bank. On the other hand, product coverage mainly focuses on financial products, for instance, mergers, and acquisitions, public finance, leverage finance, asset finance, and leasing. Besides, they collaborate and work with industry groups on intricate needs of the client. The most conversant individual you can come across in the field of investment banking is one James Dondero.
James Dondero is the president and co-founder of Highland Capital Management (HCM). Mr. James Dondero has an experience worth over 30 years in the equity and credit markets. These markets are largely focused on distressed and high-yielding investing. The inception of Highland Capital Management was in the year 1993 and has, since then, pioneered the development of Collateralized Loan Obligation (CLO). Highland Capital Management has also been a pioneer in developing credit-oriented solutions for retail investors and institutions worldwide. Besides, Mr. Dondero is a very active philanthropist. James Dondero has supported initiatives in education, public policy, and veteran’s affairs. In May 2015, James Dondero was appointed the chairman of the Board of Directors of NextPoint Trust, Inc. alongside Arthur Laffer. Mr. James Dondero’s credit markets experience spans three decades making him one of the original pioneers of the Collateralized Loan Organization (CLO).
Prior to Highland Capital Management, Mr. James Dondero was the Chief Investing Officer (CIO) of the Protective Life’s GIC subsidiary and helped the business to grow from startup to $ 2 billion. This success was achieved within a span of only five years as he managed over $1 billion for American Express in fixed funds. Mr. James Dondero also serves as the member of the Board of Directors for both American Banknote and MGM Studios. When thinking of investment banking, James Dondero is the man.