Q & A with Omeed Malik (UPDATED 2020)
As a boutique merchant bank, Farvahar Partners leverages decades of pertinent experience within the financial world to garner initial, and late stage funding for businesses of all sizes. By investing partner capital, and providing liquidity, investment banking, capital raising, and advisory capacities for clients, Farvahar Partners serves as a one-stop shop for companies to garner continued growth, and prosperity. At the helm of Farvahar Partners, CEO and Founder Omeed Malik oversees daily operations, and leverages years of leadership experience into client success stories.
Born in New Jersey, Malik earned his Bachelor’s Degree in Philosophy and Political Science from Colgate University, before graduating with honors from Emory University’s prestigious School of Law, garnering a Juris Doctor degree. Beginning his career in the realm of local politics, Malik enjoyed his initial professional foray as spokesperson for former New Jersey Representative Donald Payne. Malik continued his professional trajectory within his next role as a corporate lawyer for New York City’s Weil, Gotshal & Manges, where he gained extensive experience within the realm of bankruptcy, and corporate structure in the private, and public sector.
Next, Malik perfected various skills through successfully redeveloping the company’s national distribution platform as the Senior Vice President at MF Global. Finally, Malik became the Managing Director and Global Head of the Hedge Fund Advisory Business at Bank of America Merrill Lynch. Answering his entrepreneurial calling, Malik leveraged years of pertinent experience into the creation of Farvahar Partners.
What makes new clients want to join the portfolio at Farvahar Partners?
As founder and CEO of the company, I remain vastly involved in all aspects of client interaction, planning, and execution of funding planning. Thus, I can attest to the profound attention that is paid to each client’s unique needs, with the notion that each business is wildly different, and thus, must be treated on a case-by-case basis. Not only do we provide alternative sources of funding for initial, and late stage funding rounds, but we also provide an advisory capacity that is rarely seen within this type of company.
By gaining a positive reputation with our clients, referrals come from these experiences, as word of mouth is still undoubtedly a powerful tool. Additionally, I often present my thoughts about the market, legal commentary, and specific industry insights on various panels, and within national publications. I have found that this helps individuals to understand our unique perspective, and acts as a way to increase brand awareness.
Within the growing trend of Pre-IPO trading, how important is SEC compliance?
Within the private sector, increasing numbers of investors are becoming interested in the unique benefits of investing in Pre-IPO private companies. After the passing of 2012’s Jobs Act, private companies were able to procure the liquidity needed to propel vertical growth, all prior to going public through an IPO. This has created a uniquely new market opportunity. Due to the burgeoning nature of this newly formed trading presence, SEC compliance is vital. In order to partake in transactions within the private sector, to be an institutional provider of private liquidity, a company must be a registered broker/dealer. Farvahar Partners is registered as such, and can confidently trade under the existing laws.
What advice do you have for young people who are looking to enter the field of investment banking?
I would certainly encourage young people to continue learning about all facets related to their position within the world of investment banking. Though some people may have difficulty correlating investment banking to foreign and domestic policy, politics drives the way in which business is conducted. Thus, I would encourage young people to look at their professional field through a macro lens, recognizing ways in which things are connected, and working to create the most conducive atmosphere to their particular business needs.
What’s a new trend you’re excited about?
I’ve recently seen a shift within the investment industry with a new focus on investing in private companies, Pre-IPO.
This trend creates newly burgeoning opportunities for trading and investing Pre-IPO as more and more companies wait longer before going public. This new method provides the private company’s employees the option to release their stock options that would have had to have been reserved until the company’s official IPO.
On an international level, this trend can be seen with the current status of Uber (the company being sold prior to its IPO). Looking at it from a macroeconomic point of view, the current global market holds all of the initial capital needed to fund startups, tech hubs, and innovators within the rapidly growing world of technology. This, along with a recent growing existence of liquid capital within many developing countries, allows for the Pre-IPO investment in these developing tech-based companies.
This trend allows up and coming entrepreneurs to find their seed funding from a variety of sources, including many sources typically outside of traditional funding venues. For this reason, even fledgling startup companies no longer need an IPO. These shifts point towards an increasingly global market and are incredibly exciting.
Omeed Malik recently moderated a panel for at SALT Conference titled “From Venture Capital to Growth Equity – Founders Perspective on Today’s Capital Markets.” Within the panel Omeed was joined by five start-up founders with each providing their professional insights on a variety of topics regarding investing in the private sector. Check out the video and a few of our favorite quotes below.
“Maybe in the “old days” you would get your venture money and then within a few years there would be an exit. That’s simply not happening anymore at least when it relates to IPOs and public markets, public exits.” – Omeed Malik
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