Page 233 - James Caan - The Real Deal

22 · Serial Entrepreneur

companies, I had time to think about where I wanted to go next.
I had met a recruitment consultant at an industry event who told
me his average fee was £35,000. Ours was £6k or £8k; we had the
odd £20k fee but consistently to take a £35k fee was phenomenal.
It was because he worked in the investment banking sector, where
the salaries are legendary. I decided to investigate if I should start
a specialist headhunters in the investment market. I could simply
have started a division within Alexander Mann, but Humana had
taught me just how powerful my strategy of backing people to run
their own businesses could be. If I found the right person and
motivated them the right way, I would create a much better
business and have a far more lucrative investment.
For three months or so I immersed myself in the world of
investment banking. Like any sector, it had its own language that
needed to be learned, key players who had to be identified and
gaps in the market that might be exploitable. I did what I always
did: I met lots of people and asked lots of questions, and slowly
but surely I built up my own picture of what was needed and what
would work. I also met the best people in the field and found the
best man for the task. Like Doug, I gave him equity in the business,
found him space in Alexander House and was on hand for
anything he needed. That business was Alexander Mann Financial
Markets Ltd, and it was soon joined by Alexander Mann
Technology Ltd and Alexander Mann Finance Ltd, all led by the
best people I could find who were motivated by a sizeable equity
stake.
It didn’t cost me a vast amount to get some of these ventures
going. The office space didn’t cost me anything because I owned
the building, the overheads – pay roll, accountancy, etc – were
covered by in-house expertise, and in some cases the biggest cost
was actually the chief executive’s salary until the revenue streams
started kicking in. I could offer new partners an exceptional
environment in which to be successful at Alexander House and I

223