Stifel Nicolaus
Encyclopedia
Stifel Nicolaus and Company, Inc., incorporated in 1923, is the largest subsidiary of Stifel Financial Corporation and is a member of Securities Investor Protection Corporation
(SIPC). The parent company has several subsidiaries.
Stifel Financial Corporation was formed as a holding company in 1983 and listed on the New York Stock Exchange
, , when it was offered publicly. Its predecessor company was founded in 1890 as the Altheimer and Rawlings Investment Company and is headquartered in St. Louis, Missouri
. It offers securities-related financial services in the United States and Europe through its wholly owned subsidiaries, Stifel Nicolaus and Company, Incorporated (Stifel Nicolaus, the subject of this article), a retail and institutional brokerage and investment banking
firm; Century Securities Associates, Inc. (CSA), an independent contractor broker-dealer
firm; Stifel Nicolaus Limited (SN Ltd), the Company’s international subsidiary, and Stifel Bank and Trust, a retail and commercial bank
. These subsidiaries provide brokerage, trading, investment banking
, investment advisory, and related financial services. Customers include individuals, corporations, institutions, and municipalities.
The parent company has five segments: Private Client Group, Equity Capital Markets
, Fixed Income
Capital Markets, and Stifel Bank, among others. Private Client Group provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance to its private clients. Equity Capital Markets includes operations such as corporate finance management and participation in underwriting
s, mergers and acquisitions
, institutional sales, trading, research, and market making
. The activities of Fixed Income Capital Markets include public finance
, institutional sales, and competitive underwriting, and trading. Through Stifel Bank and Trust, the company offers retail and commercial banking services to private and corporate clients.
As of 2009, Stifel Financial employed 4,434 people in over 294 offices throughout the U.S. and in Europe.
business (LM Capital Markets) from Citigroup Inc
. The LM Capital Markets business acquired by the Company included the Investment Banking, Equity and Fixed Income Research, Equity Sales and Trading, and Taxable Fixed Income Sales and Trading Departments. (22 offices in the US and Europe and 500 associates)
In October 2006, the company acquired the private client business of Miller Johnson Steichen Kinnard, Inc. (MJSK). (7 offices)
In February 2007, the company completed the acquisition of Ryan Beck Holdings, Inc., from BankAtlantic Bancorp, Inc.
Through its subsidiaries, Ryan Beck provides financial advice and solutions to individuals, institutions, and corporate clients. (43 offices in 14 states and 1,100 associates)
In April 2007, the company completed the acquisition of First Service Financial Company, and its wholly owned subsidiary, First Service Bank, a St. Louis-headquartered, Missouri chartered bank. As a result of the transaction, the company became a bank holding company and a financial holding company.
In June 2008, the company announced the formation of a wholly owned asset management subsidiary, Choice Financial Partners, Inc. The subsidiary will focus on asset management businesses offered to individual and institutional investors through Stifel Nicolaus and directly with third parties.
In December 2008, the company completed its $12 million acquisition of Butler Wick & Co. Inc. from United Community Financial Corp. Butler Wick, a Youngstown, Ohio-based provider of financial advisory services, has offices in Ohio, Pennsylvania and New York. (23 offices in three states and 175 associates)
In March 2009, the company entered into an exclusive agreement with UBS Financial Services Inc.
("UBS") to acquire up to 55 branches from the UBS Wealth Management Americas branch network. (55 offices in 24 states and 500 associates)
Securities Investor Protection Corporation
The Securities Investor Protection Corporation is a federally mandated, non-profit, member-funded, corporation in the United States. It protects investors in certain securities from financial harm if a broker-dealer fails...
(SIPC). The parent company has several subsidiaries.
Stifel Financial Corporation was formed as a holding company in 1983 and listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, , when it was offered publicly. Its predecessor company was founded in 1890 as the Altheimer and Rawlings Investment Company and is headquartered in St. Louis, Missouri
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
. It offers securities-related financial services in the United States and Europe through its wholly owned subsidiaries, Stifel Nicolaus and Company, Incorporated (Stifel Nicolaus, the subject of this article), a retail and institutional brokerage and investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
firm; Century Securities Associates, Inc. (CSA), an independent contractor broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
firm; Stifel Nicolaus Limited (SN Ltd), the Company’s international subsidiary, and Stifel Bank and Trust, a retail and commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
. These subsidiaries provide brokerage, trading, investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
, investment advisory, and related financial services. Customers include individuals, corporations, institutions, and municipalities.
The parent company has five segments: Private Client Group, Equity Capital Markets
Equity Capital Markets
Equity capital is raised in many ways; the major types of equity capital are unlisted equity, listed equity and hybrids. Equity capital market practices traditionally advise in a full range of equity, debt equity-linked, hybrid, asset-backed, credit-linked and derivative products that are offered...
, Fixed Income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
Capital Markets, and Stifel Bank, among others. Private Client Group provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance to its private clients. Equity Capital Markets includes operations such as corporate finance management and participation in underwriting
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
s, mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
, institutional sales, trading, research, and market making
Market maker
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...
. The activities of Fixed Income Capital Markets include public finance
Public finance
Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...
, institutional sales, and competitive underwriting, and trading. Through Stifel Bank and Trust, the company offers retail and commercial banking services to private and corporate clients.
Overview
- The CEO is Ronald J. Kruszewski.
- One of the largest middle-market investment banks
- Corporate headquarters in St. Louis
- Capital markets headquarters in Baltimore
- Private Client Group
- 1,885 investment executives (including independent contractors affiliated with Century Securities Associates)
- 296 offices in 42 states
- Over $91 billion in assets under managementAssets under managementAssets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
- Equity Research
- Leading "off Wall Street" equity research franchise
- 5th largest research department in the U.S. and the largest provider of small cap coverage
- #1 in Stock Picking and #1 in Earnings Estimate Accuracy out of 264 firms in StarMine's 2008 domestic rankings
- Over 60 senior research analysts covering 826 companies
- Investment Banking
- Extensive capital raising experience and mergers & acquisitions experience
- Since 2000, Stifel Nicolaus Capital Markets (including Legg Mason transactions) has completed:
- • Over 692 public offerings totaling $165 billion in value
- • Over 297 M&A transactions totaling $22 billion in value
- • Over 284 private placements totaling $12 billion in value
- Institutional Sales & Trading
- 115-person Institutional Equity Sales & Trading team
- 142-person Institutional Fixed Income Sales & Trading group
- 25 offices including 3 European locations
History
- 1890 Founding of the Stifel, Nicolaus predecessor firm named Altheimer & Rawlings Investment Company in St. Louis.
- 1923 Company renamed Stifel, Nicolaus & Company, Incorporated.
- 1931 The first branch office was established in Chicago, IL.
- 1958 Stifel became a member of the New York Stock Exchange.
- 1960 Albert, Theis & Sons acquired.
- 1962 Cruttenden, Podesta & Miller Louisville Office acquired.
- 1970 Dempsey Tegeler Office acquired.
- 1981 Altorfer, Podesta & Woolard acquired.
- 1982 Bacon Whipple acquired.
- 1983 Stifel's holding company, Stifel Financial Corporation, formed and goes public. In July, Stifel becomes a publicly owned corporation as a result of a $1,442,870 share offering.
- 1985 Scherek, Stein & Frane acquired.
- 1987 Stifel Financial Corporation was listed on the New York Stock Exchange (NYSE).
- 1988 Rowland, Simon acquired.
- 1997 Purchase of 15% of Stifel Nicolaus common stock by Western-Southern Life Insurance Company.
- 2000 Stifel merged with Hanifen Imhoff in Denver. Firm continued under the name Stifel, Nicolaus & Company, Incorporated.
- 2005 Stifel Financial Corporation announced acquisition of Legg Mason Capital MarketsLegg MasonLegg Mason, Inc. is an American-based global investment management firm with a focus on asset management. The company’s business is divided in two divisions: Americas and International...
Business (Investment Banking, Institutional Sales & Trading, Research, and Fixed Income), then owned by CitigroupCitigroupCitigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
. - 2006 Purchased Private Client Group of Minneapolis-based Miller Johnson Steichen Kinnard, Inc. (MJSK) and announced bank acquisition of First Service Financial Co.
- 2007 Ryan Beck & Co.Ryan Beck & Co.Ryan Beck & Co. was an investment banking and brokerage firm based in New Jersey. Since its acquisition in 2007, the firm has operated as a subsidiary of Stifel Financial.-History:...
acquired from BankAtlantic BancorpBankAtlanticBankAtlantic, Member FDIC, is a subsidiary of BankAtlantic Bancorp, Inc. . The company's headquarters is based in Fort Lauderdale, Florida, in Southeast Florida. BankAtlantic is a company that provides consumer and business banking services to communities throughout the state of Florida...
. - 2008 Announced formation of asset management subsidiary, Choice Financial Partners, Inc. and acquired 17 offices from Butler Wick & Company from United Community Financial Corp.
- 2009 Acquired 56 offices from UBS Financial Services Inc.UBS AGUBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
- 2010 Acquired Thomas Weisel PartnersThomas Weisel PartnersThomas Weisel Partners Group, Inc. , also known as TWP or Weisel, is a U.S. growth focused investment banking firm based in San Francisco, California....
. - 2011 Acquired Stone & Youngberg LLC.
Recent acquisitions and highlights
On December 1, 2005, Stifel Financial closed on the acquisition of the Legg Mason Capital MarketsLegg Mason
Legg Mason, Inc. is an American-based global investment management firm with a focus on asset management. The company’s business is divided in two divisions: Americas and International...
business (LM Capital Markets) from Citigroup Inc
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
. The LM Capital Markets business acquired by the Company included the Investment Banking, Equity and Fixed Income Research, Equity Sales and Trading, and Taxable Fixed Income Sales and Trading Departments. (22 offices in the US and Europe and 500 associates)
In October 2006, the company acquired the private client business of Miller Johnson Steichen Kinnard, Inc. (MJSK). (7 offices)
In February 2007, the company completed the acquisition of Ryan Beck Holdings, Inc., from BankAtlantic Bancorp, Inc.
BankAtlantic
BankAtlantic, Member FDIC, is a subsidiary of BankAtlantic Bancorp, Inc. . The company's headquarters is based in Fort Lauderdale, Florida, in Southeast Florida. BankAtlantic is a company that provides consumer and business banking services to communities throughout the state of Florida...
Through its subsidiaries, Ryan Beck provides financial advice and solutions to individuals, institutions, and corporate clients. (43 offices in 14 states and 1,100 associates)
In April 2007, the company completed the acquisition of First Service Financial Company, and its wholly owned subsidiary, First Service Bank, a St. Louis-headquartered, Missouri chartered bank. As a result of the transaction, the company became a bank holding company and a financial holding company.
In June 2008, the company announced the formation of a wholly owned asset management subsidiary, Choice Financial Partners, Inc. The subsidiary will focus on asset management businesses offered to individual and institutional investors through Stifel Nicolaus and directly with third parties.
In December 2008, the company completed its $12 million acquisition of Butler Wick & Co. Inc. from United Community Financial Corp. Butler Wick, a Youngstown, Ohio-based provider of financial advisory services, has offices in Ohio, Pennsylvania and New York. (23 offices in three states and 175 associates)
In March 2009, the company entered into an exclusive agreement with UBS Financial Services Inc.
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
("UBS") to acquire up to 55 branches from the UBS Wealth Management Americas branch network. (55 offices in 24 states and 500 associates)
Major locations
- St. Louis, MissouriSt. Louis, MissouriSt. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
, U.S., global headquarters - Baltimore, Maryland, U.S., capital markets headquarters
External links
- Stifel Nicolaus website
- Investor Relations
- Press Releases
- Branch Locator
- Board of Directors
- Stifel Bank & Trust website
- Century Securities Associates website