CHARLOTTE, N.C. — During his long and prosperous banking career, Hugh McColl Jr. made a name for himself by conquering untapped markets. Now as co-founder of investment banking firm McColl Garella LLC, the retired Bank of America chairman and chief executive has a new target in his scope: middle-market female business owners in need of advice on mergers and acquisitions, and other investment services.

        “This is a market that's been underserved or not served at all,” Mr. McColl said recently in his office in the Bank of America tower in downtown Charlotte, where he was joined by his new partner, Julie Garella.

        “This market falls right in our sweet spot,” said Mr. McColl, who also runs another investment banking firm, McColl Partners LLC, which provides similar types of services to middle-market businesses.

        Unlike that firm, McColl Garella will focus on a specific kind of client: the female business owner, chief executive officer or chief financial officer at a mid-sized company with annual revenues of $30 million to $100 million.

        Sharon Hadary, executive director of the Center for Women's Business Research in Washington, D.C., said women-owned businesses with 100 employees or more are growing 68 percent faster than all businesses of similar size.

        Women-owned businesses with $10 million or more in revenues are growing even faster, she said. That kind of growth means these businesswomen need trustworthy investment advice, she said.

        “He (McColl) is doing this because he saw a business opportunity,” she said. “This is not a social service. He and Julie ran the numbers and they wanted to be the first movers in this market.”

        The firm was founded in January, after Ms. Garella approached Mr. McColl about joining his other company, McColl Partners.

        Some of the firm's partners told Mr. McColl they felt she didn't have enough experience, although Ms. Garella had also co-founded Carnage Capital Advisers, the only investment advisory firm in the Carolinas owned by a woman.

        “She told me she would work for nothing and earn only from the new business she brought to the firm,” said Mr. McColl, who was impressed by her ambition. He said they began to talk and Ms. Garella convinced him there was a niche market that wasn't getting enough attention.

        “No women were coming through (the doors of McColl Partners),” Ms. Garella said. “I knew that women-owned companies were the fastest-growing segment in the economy.”

        Mr. McColl did some research and came away with a new respect for women who own and run their own companies.

        “They are very conservative in the way they have to manage money,” he said. “And despite the difficulties many companies are facing, these firms are in better shape than most because they are not leveraged. So there's not a lot of debt.”

        Mr. McColl said he hopes to bring some of his wisdom and a reputation for candor to McColl Garella. “I'm not going to sugarcoat my advice to anyone,” he said. “To be successful, we need to be straightforward.

        “Capital lacks prejudice. It can only flow where opportunity exists and the only void here is knowledge.”

        McColl Garella will advise clients on potential acquisitions or mergers, raising private equity or restructuring debt. The firm also will offer direction on exit strategies, depending on an owner's goals.

        “Buying or selling a business can be overwhelming,” said Ms. Garella. “It's extremely important to seek guidance from the right people who fully understand how to steer the process and deliver results.

        “Of course, Hugh McColl, with over 100 acquisitions under his belt, brings exceptional experience to the company,” she said.

        Mr. McColl said the firm is working with several clients, but he did not want to identify them.

        “We're close to closing our first transaction right now and earning our first big fee,” he said, with the same tone of excitement he used when, as head of Bank of America, he announced the acquisition of another large bank.

        Ms. Hadary, who recently heard Mr. McColl speak to a group of female business owners, said the retired banker's respect in the financial community will open doors that in the past might have been wedged shut to McColl Garella's potential customers.

        “His backing is extremely powerful,” she said. “I think they are well positioned. Julie knows how to leverage his connections and his presence.”

        Mr. McColl would rather give the credit to his new partner.

        “Julie is the mother of this company,” he said. “It's 100 percent her idea. I happened to like her idea.”

Sun setting on 727s
Herman: Remember women left behind
Meijer, the man, slows down, a little
What's the Buzz?
Business meetings & seminars
MMS helps streamline production
Tristate Business Notes
Women emerge as business owners
Feel good about being on your own
Industry notes: Commercial development
Commercial real estate projects & transfers
Bahama aims for $1 billion
Tall furniture not a stretch for impresario