What functions does the Merchant bank performs

Question

When a company wants to raise funds from intermediaries what functions does the Merchant bank perform?

Answer 1

Merchant bank is employed in the case of private equity investment where unregistered securities of either publicly or privately held companies are also involved in it. Bank offering various services to the private or public companies is named as merchant bank. It consists of both investment and commercial banks. The functions that are performed by the merchant bank when the company wants to increase funds from intermediaries are illustrated below:-

i) Portfolio management

ii) Sanction the Loan

iii) Project Financing

iv) Management of issue

v) Lease management