James Reynolds, Jr., Loop Capital Markets' chief executive officer, chairman and co-founder, started in the municipal bond industry in 1981, when bonds were still traded "from a blue book — you actually printed out the prices of munis from the day before," Reynolds recalled.
Banks and insurance companies dominated the buyer base, with mutual funds just emerging, and no ETFs. The market was much more fragmented, with over 100 dealers trading munis and each state having its own little cottage industry, Reynolds said.
Since then, the industry has become more efficient, global, professional, and electronic. But some characteristics remain.
"It's a very, very intimate market," Reynolds said. In a business where everyone knows each other — and professionals tend to stick around for decades — Reynolds attributes his success in part to the solid reputation he's built for himself and the firm.
"I've not taken any shortcuts and I've treated everyone fairly," he said.
Reynolds co-founded Loop in 1997, with Sandra Reynolds and Albert Grace, Jr., as a small muni bond shop that consisted of "six muni salesmen trading bonds in a small conference room," recalled Warren "Bo" Daniels, Jr, managing director and head of public finance at Loop.
Under Reynolds' leadership, the Chicago-based company has grown into a full-service investment firm with more than 260 employees that's one of the world's largest minority or women-owned investment banking firms and one of the country's largest privately held investment banks.
It has expanded into corporate finance, equity trading, mergers and acquisitions, and asset management, among other business lines that serve a range of corporate, governmental and institutional clients.
Reynolds, who still oversees all aspects of the business, said Loop is "continuing down new paths all the time." The firm is raising money for a new round of funding for its multi-billion asset management arm JLC Infrastructure, a partnership with Magic Johnson Enterprises that is part owner of terminals at LaGuardia and John F. Kennedy International airports, among other assets.
The business is expanding into the global broker-dealer space and starting to call on sovereign countries to issue their debt, Reynolds said.
A plan to take the firm public, first announced in 2021, is still on table and could happen as early as next year depending on the recovery of the broader IPO market, he said.
Outside of the financial sector, Reynolds has built substantial standing in his hometown of Chicago as a philanthropist, business leader and mentor.
In June, he was awarded the prestigious Lincoln Leadership Prize for his "exemplary track record of mentorship, service and philanthropy." The prize recognizes individuals for a lifetime of exceptional service in the spirit of President Abraham Lincoln.
Reynolds acts as a key link between the business community and the public sector by working closely with the Chicago Mayor's Office, Cook County President's office and with Illinois Gov. J.B. Pritzker, said Daniels. Among other projects, Reynolds led the development of a $100 million film studio complex that broke ground on Chicago's South Side earlier this year, Daniels noted.
"But he's probably most proud of the work he's done with low- and moderate-income individuals, especially people of color, with a focus on the youth in Chicago, via his leadership and philanthropic activities," Daniels said. "Lately he's been helping young people channel their energy into other activities, like sports and recreation centers, to help reduce crime," Daniels said, adding, Loop hosts one of the largest summer and ongoing internship programs for disadvantaged young people of any similar-sized firm.
Reynolds serves on several local and national boards and is currently board chair of the Securities Industry and Financial Markets Association.
He holds a master's degree of management in finance from Northwestern University's Kellogg Graduate School of Management and a Bachelor of Arts in political science from the University of Wisconsin, La Crosse.
