Merchant Banking vs. Investment Banking

Though both Merchant Banking Institutions and Investment Banks contain the word “bank," neither is actually a bank in the traditional terms where one would normally perform such activities as checking and savings accounts. In fact, at their core, they are quite different types of financial institutions that perform otherwise different services.

Investment banks, on the other hand, tend to focus on raising funds for businesses and even some government entities by registering and issuing debt and/or equity and selling the result to the market.

It is important here to establish that though Capital Corp Merchant Banking Inc. is often approached by promoters who think we are a “bank,” we are in point of fact carrying out the activity of Merchant Banking, which is a vastly different concept. Please refer to http://www.capitalcorpmerchantbanking.com/merchant-banking.html for more information.

Merchant Banking differs as companies who are part of this category primarily perform their services in the field of international project financing (or foreign corporate investing), real estate, and the facilitation of international transactions. This is not to say that merchant banking companies cater only to foreign-based transactions, but rather that they are to be considered as global private financial services institutions.

As previously stated, this is where Capital Corp Merchant Banking is all about. Capital Corp Merchant Banking is by definition, is a boutique merchant banking group where the transaction amounts generally range from US $3.5 M to US $500 M.

Capital Corp Merchant Banking has the opportunity to cater to this “niche” market by offering creative debt, equity, and even mezzanine financing options.


Respectfully,

Capital Corp Merchant Banking