Loop Capital: Funding Growth in an Investment Bank Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Jim Reynolds Jr. Loop Capital founded in 1997 as an investment bank specializing in municipal bond sales. Ten years later, with thirteen offices and nearly 100 employees, Loop Capital was a national company and a mediator of more than $ 800 billion in equity underwritings, tax-exempt and taxable fixed income. In the process of developing their municipal finance and stock trading companies, Loop Capital has developed close links with a number of government officials, large institutional money managers and corporate executives. These customers started asking for help Loop Capital into other financial services, leading companies to build corporate finance, tax-exempt and taxable fixed income platforms so it can offer a wider range of investment services. Municipal and corporate finance, as well as stocks, taxable and tax-exempt trade made a positive cash flow. In a field where there were frequent crashes, Loop Capital was prosperous, and Reynolds saw a large but untapped potential in the future of the company. Over the past few years, Loop Capital served as financial advisor in several municipalities who wish to lease or sell state assets, such as airports, toll roads and ports. Now he faced some intriguing questions: Is it to run $ 700 million infrastructure fund to invest in the types of transactions the firm has helped structure? Do sense to invest in order to staff, market, and support the launch of this new fund? If the fund was launched, to Loop Capital commitment to 1% of the investment is likely to require both the general partner of the fund? "Hide
by Gregory White and Jeff Borden, Scott T. Whitaker Source: Kellogg School Management 13 pages. Publication Date: 01 Oct 2010. Prod. #: KEL494-PDF-ENG