British-Based Investment Groups before 1914

Interest in the development of business organization has neglected the creative role of the traditional merchant house. This exploratory article identifies and traces the emergence of the investment group, a type of enterprise formed as merchants shifted their interest from trading to investment in plantations, industry, shipping and other activities, and developed management skills to run them. Some 30 different groups are surveyed; they were largely built on the reputation and connexions of the "agency houses" (India and Far East) and the "international houses" (Russia, Latin America), but other roots are noticed. The investment group directed scarce management skills to growth areas, but there are signs of limited capability.