Needham & Company
|Founders||George Needham, Raymond Godfrey, David Townes|
|Headquarters||445 Park Avenue
New York, New York, United States
|Key people||John Prior, CEO|
Needham & Company is an independent investment bank and asset management firm specializing in advisory services and financings for growth companies. Needham & Company is a wholly owned subsidiary of The Needham Group, which also operates a private equity investment business and an investment management business.
Since its founding, the firm has acted as lead or co-manager in more than 640 public offerings, including 215 IPOs, been an agent on more than 100 private placements, and completed over 330 mergers and acquisitions. Together, the transactions total almost $95 million. The firm, which is headquartered in New York City also has offices in Boston, Massachusetts, Menlo Park, and San Francisco, California.
Needham was founded in 1985 by George Needham, Raymond Godfrey, and David Townes. George Needham was formerly a managing director of First Boston Corporation, where he established its business development and technology investment banking groups. Raymond Godfrey was vice president of business development at First Boston beginning in 1977. He left Needham in the 1990s but returned in 2000. David Townes, who also co-founded the firm, had previously been an investment banker at Lehman Brothers Kuhn Loeb focused on technology companies.
In October 2009, a former Needham Chief Operating Officer, Raj Rajaratnam, the billionaire founder of Galleon Group, was charged with insider trading a decade after leaving the company; his work at Needham was never called into question.
The company offers a full line of financial services, including brokerage, asset management, and research. In all its activities, Needham, focuses primarily on serving emerging growth industries and their investors.
Within its investment banking division, Needham & Company provides various advisory and financing services, which include:
- Private placements
- Public equity offerings
- High yield debt offerings
- Mergers and acquisitions advisory services
- Institutional sales and trading and equity research
Needham Investment Management, another wholly owned subsidiary of The Needham Group, offers several mutual funds and hedge funds including Needham Aggressive Growth Fund (NEAGX), Needham Small Cap Growth Fund (NESGX) and most notably, The Needham Growth Fund (NEEGX), which has been rated a top-performing mutual fund since its inception.
The funds seek to create long-term capital appreciation for its shareholders by adhering to co-founder George Needham’s long-term and patient investment style. The funds invest in venture-backed companies and emphasize knowing the management. The funds focus on growth sectors including technology and healthcare.
Needham Asset Management, another affiliate, controls Needham Capital Partners, which manages private equity funds that invest primarily in growth companies.
- The Churn. New York Times, September 9, 2005
- Money Mavericks. Forbes, October 19, 2009
- A Look at the Hedge Fund Chief Accused of Fraud. New York Times, October 16, 2009
- INVESTING WITH/Peter J. R. Trapp; Needham Growth Fund. New York Times, May 13, 2001
- Investing; Why Cash Is Still King at Some Stock Funds. New York Times, December 14, 2003
- Patience Pays Off. Barrons, April 2, 2011