What is a Book Runner?
The book runner is an underwriter who maintains and manages the books of security offerings that are offered for sale as part of a new investment issue. This designation is a reference to the process of managing the books, which is also known as “running” in the industry. While there may be several underwriters involved in the issue, only the underwriter or company that serves as the broker for all the underwriting activity is referred to as the book runner. One of the main benefits offered by a book runner is that the position serves as a central repository of all information relevant to the design and current status of the investment issue. The book runner functions as the final source of data regarding the issue. Generally, the entity that runs the books has access to updates and other pertinent information before it is available to the general public. A book runner also functions as the mechanism that allows several investors to work together on a particular issue. For example, whe
