Carnegie Investment Bank AB is a

Swedish Swedish or ' may refer to: Anything from or related to Sweden, a country in Northern Europe. Or, specifically: * Swedish language, a North Germanic language spoken primarily in Sweden and Finland ** Swedish alphabet, the official alphabet used by ...

financial services group with activities in

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

brokerage,

investment banking Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...

and

private banking Private banking is banking, investment and other financial services provided by banks and financial institutions primarily serving high-net-worth individuals (HNWIs)—defined as those with very high levels of income or sizable assets. A bank that ...

. Founded in 1803, Carnegie is headquartered in

Stockholm Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...

with offices across the Nordic region, as well as in

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

, and

Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...

. The company has market leading positions in equities research and

brokerage A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...

, corporate finance advisory and

private wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...

. Carnegie’s customers include

institutional investors An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked co ...

, corporates, financial institutions,

private equity firms A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leve ...

, governments and

high-net-worth individual High-net-worth individual (HNWI) is a term used by some segments of the financial services industry to designate persons whose investible wealth (assets such as stocks and bonds) exceeds a given amount. Typically, these individuals are defined ...

s. In 2018 Carnegie had revenues of SEK 2.4 billion and as of 31 December 2018 assets of SEK 12.6 billion. Assets under management amounts to SEK 110 billion and the number of employees is approximately 600 as of Q2 2019. In the wake of the

economic crisis of 2008 The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...

Carnegie Investment Bank AB was nationalized on 10 November 2008. In May 2009, the bank was acquired in a joint venture by the private equity company

Altor Equity Partners Altor Equity Partners is a private equity firm focused on leveraged buyout and growth capital investments in Sweden, Denmark, Finland, Norway and the DACH region. History The firm, which is based in Stockholm, Sweden, was founded in 2003 by a te ...

and the investment company Bure Equity. The ambition is to re-establish Carnegie as the leading independent investment bank in the Nordic region.

History

Background

Carnegie was established as a trading company in 1803 when David Carnegie, Sr., a

Scotsman The Scots ( sco, Scots Fowk; gd, Albannaich) are an ethnic group and nation native to Scotland. Historically, they emerged in the early Middle Ages from an amalgamation of two Celtic-speaking peoples, the Picts and Gaels, who founded t ...

, founded ''D. Carnegie & Co AB'' in

Gothenburg Gothenburg (; abbreviated Gbg; sv, Göteborg ) is the second-largest city in Sweden, fifth-largest in the Nordic countries, and capital of the Västra Götaland County. It is situated by the Kattegat, on the west coast of Sweden, and has ...

. The management of the company was later succeeded by Carnegie's nephew,

David Carnegie Jr. The Hon. David Wynford Carnegie (23 March 1871 – 27 November 1900) was an explorer and gold prospector in Western Australia. In 1896 he led an expedition from Coolgardie through the Gibson and Great Sandy Deserts to Halls Creek, and then bac ...

, who later returned to

Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to the ...

, leaving the company, which by then had considerable interests in

brewing Brewing is the production of beer by steeping a starch source (commonly cereal grains, the most popular of which is barley) in water and #Fermenting, fermenting the resulting sweet liquid with Yeast#Beer, yeast. It may be done in a brewery ...

and

sugar Sugar is the generic name for sweet-tasting, soluble carbohydrates, many of which are used in food. Simple sugars, also called monosaccharides, include glucose, fructose, and galactose. Compound sugars, also called disaccharides or double ...

production, in the hands of Oscar Ekman. When David Carnegie, Sr. died in 1890, Ekman inherited a substantial amount of shares and obtained majority ownership of the company. In 1907 the company was once again taken over, this time by Ekman's

son-in-law Son-in-Law (22 April 1911 – 15 May 1941) was a British Thoroughbred racehorse and an influential sire, especially for sport horses. The National Horseracing Museum says Son-in-Law is "probably the best and most distinguished stayer this count ...

Karl Langenskiöld, whereupon the formerly brewing and sugar businesses were divested. In the wake of the

Kreuger crash Ivar Kreuger (; 2 March 1880 – 12 March 1932) was a Swedish civil engineer, financier, entrepreneur and industrialist. In 1908, he co-founded the construction company Kreuger & Toll Byggnads AB, which specialized in new building techniques. B ...

, Langenskiöld founded a brokerage business in his name, ''Bankirfirman Langenskiöld'', which is the foundation that the Carnegie of today rests upon. In 1980 the company retrieved its name ''Carnegie''. By this time financier

Erik Penser Nils Wilhelm Erik Penser (born August 22, 1942) is a Swedish financier and businessman. Penser was born in Eslöv, Sweden, the son Wilhelm Penser, a lawyer, and Elisabeth (née Herrmann). After having studied law at Lund University, Erik Penser ...

held the controlling interest of the company. In 1988 Carnegie was taken over by what later became

Nordea Nordea Bank Abp, commonly referred to as Nordea, is a European financial services group operating in northern Europe and based in Helsinki, Finland. The name is a blend of the words "Nordic" and "idea". The bank is the result of the successive m ...

and remained in their hands until 1994, when a newly formed company, ''Carnegie Holding'', bought the bank. The new

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

was to 55% owned by

British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories, and Crown Dependencies. ** Britishness, the British identity and common culture * British English, ...

merchant bank A merchant bank is historically a bank dealing in commercial loans and investment. In modern British usage it is the same as an investment bank. Merchant banks were the first modern banks and evolved from medieval merchants who traded in commodi ...

Singer & Friedlander Kaupthing Singer & Friedlander was a financial services provider offering corporate and investment banking services to small and medium-sized companies, as well as wealth management services for high-net-worth individuals. Primary areas of act ...

and to 45% owned by Carnegie's employees. In 2001, Carnegie Holding company was merged with D. Carnegie & Co, making the latter the parent company in the ''Carnegie Group''. The company was listed on the

Stockholm Stock Exchange Nasdaq Stockholm, formerly known as the Stockholm Stock Exchange ( sv, Stockholmsbörsen), is a stock exchange located in Frihamnen, Stockholm, Sweden. Founded in 1863, it has become the primary securities exchange of the Nordic countries. As o ...

, but was delisted in connection with the nationalization. Since 2004, business is operated through ''Carnegie Investment Bank''.

Organisation

The company is divided into three divisions; Securities (equity research, sales & trading), Investment Banking (corporate finance advisory and capital markets activities) and Private Banking.

Ownership

In the wake of the

, Carnegie Investment Bank AB was, to avoid bankruptcy, taken over by the

Swedish National Debt Office The Swedish National Debt Office ( sv, Riksgäldskontoret or shortly ''Riksgälden'') was founded by Gustav III at the Riksdag of the Estates in 1789, through the Act of union and security. It is a Swedish Government agency. The first task of the ...

on 10 November 2008. The bank had crossed the restrictions from the Swedish supervisory authority, Finansinspektionen, when lending too high of a sum to one client, property magnate Maths O. Sundqvist. The largest shareholders at the time were Böös & Enblad AB (9,2%), Moderna Finance AB (6,4%) and Harris Associates fonder (5,3%). In May 2009, the private equity company

and the investment company Bure Equity acquired the company. On 3 September 2010 it was announced that Carnegie was to acquire

HQ Bank HQ Bank was a Swedish finance and banking corporation founded by Sven Hagströmer and Mats Qviberg (the last names of which form the H and the Q of the bank's name). It began operations in 2006. Due to unmanageable risk and losses its banking ...

, a strategic move with the aim to further strengthen its private banking division.Dagens Industri 2010-09-03: ''Klart: Carnegie köper HQ Bank''.
(retrieved 2010-09-04)

References

{{Investment banks Financial services companies established in 1803 Banks established in 1803 Banks of Sweden Investment banks Companies based in Stockholm Swedish companies established in 1803

History

Background

Organisation

Ownership

See also

References