He has music in his blood.
Following in the footsteps of his legendary father, Clive Davis, founder of Arista Records—Fred Davis carved his niche in the music business but as a lawyer to companies such as Spotify, Shazam, and Last.FM.
In digital media, "the capital was the hub, not the lawyer," he told CNBC's "Squawk Box" Monday. "So I re-positioned myself."
This month, the younger Davis started his own boutique investment bank, Arista Advisors—which derives its name from his father's label and leans on the family skill-set for picking stars.
"When I met Daniel Ek from Spotify, he was 22 years old, and you [could] see the stardom in him," Davis recalled. "I equate the founder of [a] company to a lead singer of a band."
With offices in New York City and London, Arista Advisors focuses on helping companies with "incredibly high valuations, losing money because they need the fuel to keep going," he said.
"If you think 10 years ago if you wanted to raise $50 to $100 million or north of that, you had to go public. Now there's a real burgeoning private market," Davis explained. "I help broker relationships and have become an expert in that area."