TD Cowen
FormerlyCowen Inc.
TypeDivision
IndustryFinancial services
Founded1918 (1918)
Headquarters599 Lexington Avenue
New York City, U.S.
Key people
  • Jeffrey M. Solomon (CEO)
  • John Holmes (COO)
  • Stephen A. Lasota (CFO)
  • Tom Strauss (Vice Chairman)
Products
RevenueDecrease US$1.28 billion (2022)
Decrease US$76.6 million (2022)
Decrease US$76.5 million (2022)
AUMDecrease US$14.5 billion (2022)
Total assetsIncrease US$8.83 billion (2022)
Total equityIncrease US$1.06 billion (2022)
OwnerToronto-Dominion Bank[1] [2]
Number of employees
1,534 (December 2022)
ParentTD Securities [1][3]
Websitecowen.com
Footnotes / references
[4]

TD Cowen (formerly Cowen Inc.), is an American multinational investment bank and financial services division of TD Securities that operates through two business segments: a broker-dealer and an investment management division.[5] The company's broker-dealer division offers investment banking services, equity and credit research, sales and trading, global prime brokerage, outsourced trading, global clearing and commission management services. Cowen's investment management segment offers actively managed alternative investment products. Founded in 1918, the firm is headquartered in New York and has offices worldwide. Cowen claims it is known for successfully identifying emerging industries early on, especially the emerging cannabis industry.[6]

On August 2, 2022, Toronto-Dominion Bank announced it would acquire Cowen for US$1.3 billion.[1] The acquisition finalized in March 2023.[7]

History

Founded as a bond trading house, Cowen expanded in its early years to include correspondent clearing and execution services. As the firm grew, it developed a leadership position in railroad bonds and launched a research and institutional sales business. The firm expanded significantly in the 1970s in research and retail, opening six offices from coast-to-coast and expanding its business offerings through acquisitions: Hardy & Company; Greene & Ladd; G.S. Grumman; and McCloy-Watterson & Co., Inc. In the 1980s, Cowen expanded internationally, established an investment banking business, and set up offices in London, Geneva, Paris, and Tokyo. In the 1990s, the firm grew the investment banking business, beginning with five initial public offerings and follow-ons for approximately $200 million, growing to nearly 80 transactions and $5 billion in proceeds by 1995.

In 1998, the company was acquired by Société Générale and renamed SG Cowen. In 2000, Cowen sold its private client services unit to Lehman Brothers, retaining its investment banking, research and sales and trading operations.[8] Cowen operated as a unit of Societe Generale until 2006, when it was spun off in an initial public offering and renamed itself, Cowen and Company. Cowen, Credit Suisse and Merrill Lynch were joint bookrunners for the public offering.[9]

On August 2, 2022, Toronto-Dominion Bank announced it had reached an agreement with Cowen to acquire it for US$1.3 billion, translating to $39 per share.[1] TD announced that Cowen chair and CEO Jeffrey Solomon would join the senior leadership of TD's securities division following the acquisition, and that the combined business will be known as TD Cowen, headed by Solomon.[10]

Growth acquisitions

• In 2009, the company merged with Ramius LLC to form a diversified financial services company.[11][12]

• In February 2011, Cowen acquired LaBranche & Co., a market-maker in options, exchange-traded funds and futures on various exchanges for around $200 million.[13]

• In 2012, Cowen acquired Algorithmic Trading Management, a provider of global multi-asset class algorithmic execution trading models,[14] and KDC Securities, a securities lending business.[15][16]

• In March 2013, Cowen acquired Dahlman Rose & Company LLC.[17][18]

• In 2015, Cowen entered the prime services business with the acquisitions of Concept Capital Markets and Conifer Securities.[19][20]

• In 2015, Cowen acquired CRT Capital Group's credit products, credit research, special situations and emerging markets businesses.[21]

• In 2017, Cowen acquired Convergex, a leading agency-focused brokerage firm and trading services provider whose businesses include: equity sales and an electronic trading platform, commission management, global clearing and prime services.[22]

• In 2018 Cowen announced the acquisition of Quarton International, a middle-market investment banking firm.[23]

Operations

Cowen and Company

Cowen and Company, founded in 1918, is the broker-dealer business of Cowen Inc. Cowen and Company offers a range of investment banking services, including: equity, equity-linked and debt financing's, mergers and acquisitions and advisory services. Cowen and Company also provides proprietary research, including its Ahead of the Curve series, institutional sales and trading services and prime brokerage. Cowen and Company specializes in growth sectors of the economy, including: consumer, energy, health care, industrials, info tech & services, and technology, media & telecommunications. Business units include:

Cowen Investment Management

Cowen Investment Management, founded in 1994 as Ramius, by Peter Cohen, Jeff Solomon, Morgan Stark, and Tom Strauss,[28][29] is the global alternative investment management business of Cowen Inc. Cowen Investment Management offers a range of alternative investment strategies including private health care, health care royalties, real estate, activism, merger and long/short equity, and growth equity. Cowen Investment Management oversees $11 billion in assets under management as of Q1/2018.

See also

References

  1. 1 2 3 4 "Canada's TD Bank to buy U.S. brokerage Cowen in $1.3 billion deal". CNBC. Retrieved 2022-08-02.
  2. ↑ "TD completes acquisition of Cowen Inc". TD Mediaroom (Press release). 2023-03-01.
  3. ↑ "TD completes acquisition of Cowen Inc". TD Mediaroom (Press release). 2023-03-01.
  4. ↑ "Cowen, Inc. Annual Report 2022 (Form 10-K)". U.S. Securities and Exchange Commission. 28 February 2023.
  5. ↑ "Cowen Announces New Brand Identity" (Press release). Business Wire. May 16, 2017.
  6. ↑ "Cannabis: $75B Opportunity". Retrieved 2018-10-20.
  7. ↑ "TD completes acquisition of Cowen Inc". TD Mediaroom (Press release). 2023-03-01.
  8. ↑ "Lehman buys Cowen unit". CNN. July 17, 2000.
  9. ↑ Caroline Meehan and Heidi Moore. "Cowen IPO falls short of expectations". Financial News.
  10. ↑ Orland, Kevin; Marotta, Stefanie (August 2, 2022). "TD to Buy Cowen for $1.3 Billion to Bulk Up Capital Markets". Bloomberg News.
  11. ↑ Spence, John (June 4, 2009). "Cowen and Ramius to merge". Marketwatch.
  12. ↑ Taub, Stephen (April 8, 2022). "Meet 2022's Hedge Fund Rising Stars". Institutional Investor.
  13. ↑ de la Merced, Michael (February 17, 2011). "Cowen to Buy LaBranche for $192.8 Million". The New York Times.
  14. ↑ "Cowen Group, Inc. Agrees to Acquire Algorithmic Trading Management". BusinessWire.com. January 17, 2012.
  15. ↑ "Cowen Group to acquire KDC Securities". American City Business Journals. September 28, 2012.
  16. ↑ "Cowen Group Completes Acquisition of KDC Securities". BusinessWire.com. November 5, 2012.
  17. ↑ "Cowen Group, Inc. Completes Acquisition of Dahlman Rose & Company, LLC". BusinessWire.com. February 28, 2013.
  18. ↑ Rapier, Graham (December 18, 2017). "Introducing Wall Street's Rising Stars of Equity Research age 35 and under". Insider Inc.
  19. ↑ "Cowen Group, Inc. to Acquire Concept Capital Markets". Retrieved 2018-08-31.
  20. ↑ Novinson, Michael (2016-12-15). "SS&C Buys Asset Services Firm Conifer for $88.5M". CRN.
  21. ↑ Keller, Laura J (March 22, 2016). "Cowen to Buy Some CRT Businesses Including Distressed Unit". Bloomberg News.
  22. ↑ Bray, Chad (April 3, 2017). "Cowen Group to Buy Brokerage Firm Convergex for $116 Million". The New York Times.
  23. ↑ Mantone, Joe (November 23, 2018). "Cowen looks outside healthcare capital markets wheelhouse with Quarton deal". S&P Global.
  24. ↑ "Investment Banking | COWEN". Cowen.com.
  25. ↑ "Research | COWEN". COWEN. Retrieved 2018-08-31.
  26. ↑ "Markets | COWEN". Cowen.com. Archived from the original on 2014-03-22.
  27. ↑ "Prime Brokerage | COWEN". COWEN. Retrieved 2018-08-31.
  28. ↑ Taub, Stephen (23 September 2010). "Ramius Is Flexing Its Muscles". Institutional Investor.
  29. ↑ McElhaney, Alicia (1 December 2017). "Cowen Announces New CEO Under Succession Plan". Institutional Investor.
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