What is a Banking Syndicate?
A banking syndicate is a group of investors, often a set of investment banks, who have come together in order to function as an underwriting group for a specific project. Typically, a banking syndicate is not a permanent entity, although the banks involved may maintain a casual communication for the purpose of being part of future financial opportunities to collaborate on financing projects. Here is some information on how a banking syndicate functions, and which factors may lead to the creation of this sort of alliance. The formation of a banking syndicate usually takes place when an investment bank becomes aware of a potential project that shows great promise of creating an excellent return, provided that enough resources can be borrowed to launch and finance the project until it begins to generate revenue. In some cases, one investment bank may be unwilling or unable to supply the resources required to fund the project. Instead of counseling the borrower to seek funding elsewhere, t
