Banks Set to Earn $500 Million From SpaceX IPO as They Court Ultrawealthy Clients
Updated
Updated · The New York Times · Jun 8
Banks Set to Earn $500 Million From SpaceX IPO as They Court Ultrawealthy Clients
3 articles · Updated · The New York Times · Jun 8
Summary
Nearly two dozen banks and brokerages are poised to collect more than $500 million in fees from SpaceX’s IPO this week, the biggest such underwriting payout on record.
The deal is also a relationship play: firms are using access to the offering to deepen ties with wealthy clients and attract new ones in a market where a small group of individuals controls growing pools of capital.
JPMorgan gathered about 350 affluent investors on its 51st floor last week to hear Elon Musk discuss the offering, with billionaires Robert Kraft and Kenneth Langone seated in the front row.
Jamie Dimon framed the access as a “democratization of finance,” but the event underscored how central the super rich have become to Wall Street banks’ wealth-management strategies.