Baader Bank AG plans to generate half its revenue from its capital markets business within five years as the German stock-exchange broker diversifies.
“We aim to build the capital markets business into our second pillar,” management board member Nico Baader, 40, said in an interview. “We now have the right setup to offer a broad base of capital markets services including debt issuance and equity market transactions.”
Baader Bank, based in Unterschleissheim near Munich, last year hired about 30 bankers from rivals including UniCredit SpA’s Munich-based HVB Group unit to strengthen its investment banking operations focusing on small and medium-sized company financing. Baader became a fully licensed bank in 2008 after previously concentrating on securities trading.
The broker’s capital markets team is headed by former HVB managers Oliver Riedel and Christian Bacherl. Georg Stuerzer, also formerly with HVB, is head of equity research.
“We aim for an operating profit in the new business in 2012 at the latest, should markets remain within normal patterns,” said Baader, who is the son of company founder and Chief Executive Officer Uto Baader.
While the capital markets team will take the business beyond advisory for initial public offerings, the company aims to participate in “three or four more” IPOs in the first half of this year, said Baader, who is responsible for customers and products, capital market services and marketing.
Baader was chosen as joint lead manager and local bookrunner for Germany in the IPO of Williams Grand Prix Holdings Plc, which is selling as much as 27.4 percent of its capital on the Frankfurt Stock Exchange.