N. Jayakumar is a seasoned veteran of the Indian financial services industry with over three decades of experience. As Managing Director and Group CEO of Prime Securities since 1992, Jayakumar’s journey began at Citibank, where he led the Corporate Finance division. He holds a PGDM in Finance from the prestigious Indian Institute of Management Ahmedabad and a Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Delhi.

In this candid interview, Jayakumar reflects on his unexpected journey into entrepreneurship and Prime Securities’ evolution under his leadership. He delves into the company’s transition from capital-heavy activities to a model focused on intellectual capital and networks, redefining traditional success metrics.

• What are your most significant challenges and achievements while leading Prime Securities?

I never set out to be an entrepreneur. I joined Prime Securities as an employee leading the Corporate Finance team, not building a company. But in 1993, when the original team unexpectedly left, I chose to stay and shape Prime’s future, even though entrepreneurship wasn’t my plan.

Over time, we evolved from capital-heavy activities like proprietary trading to a capital-light model, focusing on intellectual capital and networks. We redefined ROI as ‘Return on Intellectual Property’ and RONW as ‘Return on Network,’ emphasizing relationships and expertise over financial capital.

Despite challenges like the collapse of financial giants, we’ve not only survived but thrived, becoming a trusted name in corporate finance. However, the most rewarding part of this journey has been witnessing the incredible talent that has passed through Prime—individuals who have led and excelled in the financial world. Our alumni network reads like a who’s who of the financial world—leaders like Rashesh Shah, who heads Edelweiss; Vineet Bhatnagar of Philip Capital; Ashish Kacholia, the ace investor, and Ruchir Sharma, to name just a few. Seeing them succeed is a source of immense pride, as Prime has been a nursery for talent, helping shape the leaders of tomorrow.

• As the MD and Group CEO, what is your leadership philosophy? 

The answer to this is simple: making yourself dispensable is crucial to building true organizational strength. Empowering others and creating more dealmakers and relationship-builders within the organization fosters an environment where the company can thrive independently of any individual. This isn’t just a choice; it’s a necessity for sustainable growth.

At Prime, we’ve cultivated an atmosphere where even those who have left often return, which speaks volumes about the culture we’ve built. This isn’t a one-man show or a ‘Lala company’—it’s a publicly traded company with a market cap close to ₹950 crores. Remarkably, nearly 20% of that market cap is represented by cash and cash equivalents on our balance sheet, a level of financial security that even companies much larger than ours often lack.

This financial stability isn’t just for show; it’s the foundation that allows us to hire top talent, empower people, and foster a culture where learning from mistakes is encouraged.

• How do you balance the need for innovation with inherent risk in the financial industry, particularly in early-stage financing and restructuring services?

As part of our core philosophy, we believe this is a unique moment in post-independence India, where capital is readily available for those willing to take risks and build enterprises. Supporting young entrepreneurs in realizing their dreams isn’t just good business—it’s also good karma.

Out of the 100 companies we evaluate, we might select only ten that demonstrate the qualities necessary for success—such as the ability to absorb capital, maintain accountability, establish a strong board, and manage measured risks. To further align ourselves with the entrepreneurs we back, we often take our fees as equity, ensuring that we’re as invested in their success as they are.

We understand that there’s no one-size-fits-all formula for success. Each venture requires a bespoke approach, and we continually refine our strategies to stay sharp and responsive. It is the unique needs of the company we support. 

• How do you foresee the evolution of the investment banking industry in the next ten years? 

Global changes have heavily influenced the evolution of the Indian investment banking space. Moving ahead, investment bankers will need to move away from cookie-cutter solutions and instead focus on crafting bespoke strategies tailored to each client’s specific needs.

A key characteristic of successful investment banks is the belief that every problem is solvable. You have to approach challenges with the mindset that solutions are possible; only then can you truly address the issues at hand. In many ways, this mirrors life—there are no standard solutions to life’s challenges. Within the regulatory framework, the real skill lies in navigating complex issues while balancing shareholder interests and the greater good.

The future of investment banking will rely on a combination of the next generation’s exuberance and the experience of seasoned professionals. This synergy will be crucial in building and sustaining successful organizations.

• What advice would you give young professionals aspiring to leadership positions in finance and investment banking? 

As in any field, specialization is key. Surface-level knowledge is no longer enough; specialists are highly sought after and command higher compensation. To stand out, you must delve deeply into your chosen field and become an expert, which will increase your value in the marketplace.

In addition, strong leadership skills, including respect for colleagues and a deep understanding of your field, are required— qualities often overlooked, especially in the competitive financial services industry. I advise joining organizations that offer diverse experiences and help you define your goals. This approach will set you on a path to success.