Here is something to worry for investment bankers. Reliance Capital, the financial arm of the Reliance-Anil Dhirubhai Ambani Group (R-ADAG), is looking at entering the investment banking space. Media reports suggest that Reliance Capital could be in talks with global biggies like Bear Stearns and Paine Webber (acquired by UBS in 2000; will UBS partner with Reliance Capital?) for a partnership for its i-banking foray. Reliance Capital honcho Amitabh Jhunjhunwala is believed to be "overseeing the initiative". They have even initiated talks to hire key executives. Reliance Capital currently straddles the entire financial space. It has presence in asset management (Reliance Mutual Fund), retail broking (Reliance Money) and insurance businesses. Reliance Capital wants to ride the boom in the capital raising and M&A activities. Reliance Capital is already a big investor in India, and it picks up stakes in various entities. The company may use the relationships to further its investment banking business. This may be a threat to medium sized investment banks for sure.
source: vccircle
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