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Lead Investor


A lead investor is the primary provider of risk capital for a financial venture. A lead investor may be an individual or the lead investor may be a group of investors or a consortium of banks or other financial institutions, depending on the size of the project. In the case of the underwriting of a new security the lead investor is the institution which contributes the majority of funds from the syndicate of investors. When a syndicate of investment banks provides funds, the lead investor is generally the bank or financial institution which originated and structured the deal. While the purpose of an investment syndicate is to spread risk, it is the lead investor in the group who takes the largest risk, and it is the lead investor who reaps the largest share of the rewards.

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