Tuesday’s Headlines: Incubator for Investment Banking Start-ups

Business incubators have typically nurtured tech start-ups and artisanal ice cream operations. But a new incubator aimed at financiers is designed to help investment bankers with hustle get support in the realms of capital, contacts and regulation. DealBook profiles the Alberleen Group which does just that.

Just as Wall Street has learned from the tech industry to be more nimble, the Alberleen Group’s team members say they set themselves apart from other banks by providing more creative, customized services. In addition, the incubator has been able to attract clients who are often disenchanted with the higher fees, diminished service and potential for conflicts of interest at the big banks.

Alberleen is affiliated with a registered broker-dealer, and its members can offer clients a full array of banking services, including bond financing, M&A advisory and IPO consulting. Team members are not on a comps package, but are self-employed and set up as LLCs. The incubator lends office space, capital services, management and deal support. At the end of five years, the groups can strike out on their own if they choose. Bankers who thrive in this environment “must have an innate entrepreneurial flair in addition to extensive industry experience,” says the founder. Got that?

The incubator has a special focus on energy, real estate and middle-market deals, though moving forward the group aims to have 10 to 15 teams, including those focused on media/telecommunications and health care, as well as a presence in London and Asia.

 

Other News:

Combined market value of Australian banks is now larger than that of banks in the euro zone. [NY Times]

GM is among bidders for the international operations of Ally Financial, its former auto-loan arm. [WSJ]

Janus to sell 20 percent stake to insurer Dai-ichi. [Investment News]

The rising cost of high-speed trading to Wall Street. [DealBook]

Everything Wall Street should know about Ryan. [DealBook]