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U.S. Market Being Eyed For By Germany's Oldest Bank For Its Analysis Business


02/21/2018


U.S. Market Being Eyed For By Germany's Oldest Bank For Its Analysis Business
It was about 130 years ago that German banker Joh Berenberg Gossler & Co. KG had left the United States. But now the lender is attempting to against start business there. Expansion and covering of U.S. stocks in a major way is the aim of this bank which is the world’s second oldest bank after Banca monte dei Paschi di Siena S.p.A.
 
Dave Mortlock, the global head of investment banking for the bank said that thee company has already roped in ten analysts at its New York office in the last one year while planning to recruit 20 more analysts in the team within the next two years. The company aims to analyze U.S. equities of at least 300 companies by the next two years from the current number of 100.  The industry team of the bank in Europe would provide information about coverage of 100 American blue-chip companies. 
 
"Over the past decade, we’ve expanded our European business. In the next ten years, we will focus on the U.S.," Mortlock said.
 
There is a team of 50, including traders, working for Berenberg in New York. The bank shifted to two new offices in early February. This now grants the company enough space to enhance the number of employees in New York three folds to 150 within the next two years.
 
The American market is also being eyed by other German private banks as a potential business market. Advising institutional investors, Lampe Capital North America LLC was set up by Bielefeld based Bankhaus Lampe KG as its U.S. subsidiary two years ago.
 
Experts from the industries that the bank covers or intends to cover as well as those from other banks are being employed by Berenberg. "We are very picky, the bar is high," Mortlock said. heh also added that there are a range of services that the company wants to offer and its approach to the market is different from those used by its competitors. "Working with us, analysts can prove to be real stock pickers. They will not just produce comments on balance sheet figures."
 
According to Mortlock, the approach of the bank is tot identify and find out small and mid-sized U.S. firms that are not covered adequately by other analysts and those companies that possess a good management set up as well as a great business model. Industrial, technology, media and telecommunications are some of the potential sectors that the bank will look out for.
 
Mortlock said that the company would be at an advantage compared to competitors because of the expertise and experience of covering small and mid-sized companies by the European team of the bank when it ventures into the small and mid-sized market in the U.S. "We are very open minded in terms of coverage."
 
The target customers for the bank are global investors. Addition of smaller U.S. companies to its list of coverage for blue-ships companies would be the source of its potential revenues. Currently the bank caters to over 700 institutional investors and it aims to be viewed as a one stop shop for market needs.
 
(Source:www.bloomberg.com)