Piper Jaffray

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Piper Jaffray & Co.
Public
Traded as NYSEPJC
Industry Financial Services
Founded Minneapolis, Minnesota
1895; 121 years ago (1895)
Headquarters Minneapolis, Minnesota, United States
Key people
Andrew S. Duff, Chairman and CEO
Products Investment Banking, Public Finance, Asset Management, Equity Sales & Trading, Fixed Income Services, Equity and Debt Capital Markets, Investment Research
Revenue $696.3 Million (2015)
Number of employees
1,300
Website www.piperjaffray.com

Piper Jaffray Companies (NYSE: PJC) is a full-service investment bank and asset management firm focused on mergers and acquisitions, financial restructuring, public offerings, public finance, institutional brokerage, investment management and securities research. Through its principal subsidiary, Piper Jaffray & Co., the company targets corporations, institutional investors, and public entities.

Based in Minneapolis, Minnesota, Piper Jaffray has 54 offices in the U.S., Europe and Asia.[1] The company was founded in 1895.

In 2015, Forbes magazine recognized Piper Jaffray on its list of America's 50 Most Trustworthy Financial Companies.[2] Piper Jaffray was also named 2014 Investment Bank of the Year by Mergers & Acquisitions Journal.[3]

History[edit]

Piper Jaffray traces its roots to 1895 when George Lane established George B. Lane, Commercial Paper and Collateral Loans & Co., a commercial paper brokerage, in Minneapolis. In 1913, Piper, Jaffray Co. was established as another commercial paper business by H.C. Piper Sr. and Clive Palmer (C.P. or Palmer) Jaffray. In 1917, George B. Lane & Co. merged with Piper, Jaffray & Co. to form Lane, Piper & Jaffray.[4]

The firm first obtained a seat on the New York Stock Exchange in 1931 with the acquisition of Hopwood & Company, which had been devastated by the stock market crash. In 1971, Piper first offered stock to the public and became a publicly held corporation known as Piper, Jaffray & Hopwood Incorporated. Later, in 1986, Piper's common stock began trading on the NASDAQ under the ticker symbol PIPR. In 1997, the firm was acquired by U.S. Bancorp, also based in Minneapolis, for $730 million in cash. From 1999 to 2003, the firm was known as U.S. Bancorp Piper Jaffray. In 2003, U.S. Bancorp spun off Piper Jaffray[5] in a stock dividend to its shareholders, making the company independent once again under the symbol PJC. In 2006, the company sold its brokerage business to Zurich-based UBS for $510 million in cash.[6] The business had approximately 800 brokers at that time.

Operations[edit]

Piper Jaffray New York Office at 345 Park Ave.
Piper Jaffray Headquarters, US Bancorp Center in downtown Minneapolis

Piper Jaffray operates principally through the following business segments:

Investment banking[edit]

Within its investment banking division, Piper Jaffray provides advisory and financing services involving:

In 2013, Piper Jaffray was recognized for the second year in a row as the top healthcare investment bank by Global Finance Magazine.[7] [8]

In February 2016, Piper Jaffray acquired Houston-based energy firm Simmons & Company International for a total consideration of approximately $139 million, consisting of $91 million in cash and $48 million in restricted stock.[9]

Public finance[edit]

Piper Jaffray underwrites debt issuances and provides financial advisory to government and not-for-profit entities. In 2015, Piper Jaffray was ranked the No.3 underwriter of negotiated long-term transactions nationwide (by number of issues.) [10]

Institutional brokerage[edit]

Piper Jaffray serves institutional investors and corporate clients through the following segments:

Asset management[edit]

Piper Jaffray provides investment management and advisory services to institutional clients in the areas of equity, fixed income, private equity funds, master limited partnership and merchant banking. In 2010, the company acquired Advisory Research, Inc.,[11] a Chicago-based asset management firm with approximately $7.5 billion in assets under management. Advisory Research provides U.S., international, global and MLP and energy infrastructure strategies to institutional investors.

Industries[edit]

Piper Jaffray investment bankers focus on the following sectors:

  • Agriculture and Clean Tech
  • Business Services
  • Consumer
  • Education (K-12, Higher Ed, Charter Schools)
  • Energy
  • Financial Institutions
  • Financial Sponsors
  • Healthcare
  • Hospitality
  • Industrials
  • Project Finance
  • Real Estate and Multifamily
  • Senior Living
  • State & Local Government
  • Technology
  • Transportation

Executives and directors[edit]

Leadership team[edit]

  • Andrew Duff: Chairman and CEO
  • Debbra Schoneman: Chief Financial Officer
  • Chad Abraham: Co-Head of Investment Banking and Capital Markets
  • Christine Esckilsen: Chief Human Capital Officer
  • Chris Crawshaw: CEO of Advisory Research, Inc.
  • Frank Fairman: Head of Public Finance Services
  • John Geelan: General Counsel
  • Jeff Klinefelter: Global Head of Equities
  • Scott LaRue: Co-Head of Investment Banking and Capital Markets
  • Shawn Quant: Chief Information Officer
  • Tom Schnettler: Vice Chairman of Piper Jaffray & Co.
  • Brad Winges: Head of Fixed Income Services

Board of directors[edit]

  • Andrew Duff: Piper Jaffray Companies Chairman and CEO
  • William Fitzgerald: Chairman and CEO of Ascent Capital Group, Inc.
  • Michael Frazier: Former Chairman and CEO of Simmons & Company International
  • B. Kristine Johnson: President of Affinity Capital Management
  • Addison (“Tad”) Piper: Vice Chairman and former Piper Jaffray Companies CEO
  • Lisa Polsky: Chief Risk Officer of CIT Group
  • Sherry Smith: Former Executive VP and CFO of SUPERVALU INC.
  • Philip Soran: Former President of Dell Compellent and former CEO of Compellent Technologies
  • Scott Taylor: Executive VP, General Counsel and Secretary of Symantec Corp.
  • Michele Volpi: CEO of Betafence Holdings NV and former CEO of H.B. Fuller Company

Regulator fines[edit]

In 2002, Piper Jaffray was fined $25 million by state and federal regulators to settle charges that it provided biased stock ratings as part of the Global Analyst Research Settlements. Other firms, such as JP Morgan, Goldman Sachs, Merrill Lynch, UBS, Deutsche Bank and Morgan Stanley were fined for similar reasons. The firm agreed to make structural changes relating to its research and investment banking program to restore confidence in its business.[12]

Office locations[edit]

See also[edit]

References[edit]

External links[edit]