J. & W. Seligman & Co.
| Company type | Private (formerly employee-owned partnership) |
|---|---|
| Industry | Investment banking, Investment management |
| Founded | 1846 |
| Founder | Joseph Seligman, James Seligman |
| Fate | Investment banking division divested due to Glass–Steagall Act; acquired by Ameriprise Financial in 2008 |
| Successor | Seligman Investments (investment management under Ameriprise Financial) |
| Headquarters | New York City , United States |
Area served | United States, Europe, international markets |
Key people | Isaac Newton Seligman (head from 1894), William C. Morris (director leading 1989 buyout) |
| Products | Investment banking (historical), mutual funds, hedge funds, retirement solutions, separately managed accounts |
| Owner | Ameriprise Financial (since 2008) |
| Parent | Ameriprise Financial |
J. & W. Seligman & Co., established in 1864, stood as a prominent American investment bank from the 1860s until the 1920s, when its investment banking division was divested due to the Glass–Steagall Act. The company was instrumental in financing key U.S. railroad projects during the 1870s and contributed to the early 20th-century construction of the Panama Canal. Additionally, it played a significant role in founding major corporations such as Standard Oil and General Motors.
Following its acquisition by Ameriprise Financial in November 2008, Seligman now functions as an investment management firm under the Seligman Investments name, providing separately managed accounts, retirement solutions, and a suite of mutual fund offerings.
Founding and formative years
The firm originated in New York in 1846 when Joseph Seligman and his brother James launched an importing business. Their younger siblings William, Jesse, Henry, and Leopold later joined, along with Abraham and Isaac. Hailing from Baiersdorf, Bavaria, the family expanded operations to San Francisco by 1851. After eight years, Jesse and William returned to New York to establish a dry goods enterprise, securing lucrative government contracts supplying Union Army uniforms during the American Civil War, amounting to millions of dollars. Payments were partially made with federally issued government bonds, which they subsequently sold to maintain liquidity.
After the war, the brothers transitioned into banking; Jesse inaugurated a Frankfurt office in 1865, marking the first American firm to market U.S. Government bonds in Europe. The company acted as fiscal agent for war bond conversions and served government departments including State and Navy. Abraham founded a New York bank; Isaac and Leopold opened a London branch; William established one in Paris.
During the post-war industrial boom, Seligman heavily financed railroads, brokering transactions for financiers like Jay Gould. Their investments included railroads such as Missouri Pacific, Atlantic and Pacific, South Pacific, and Missouri–Kansas–Texas. In 1876, they collaborated with the Vanderbilt family on developing public utilities in New York.
Among the eight brothers’ 36 sons, only Isaac Newton Seligman assumed leadership as head of the firm in 1894. By the late 1800s, J.& W. Seligman & Co.’s U.S. partnership had affiliated European offices that became autonomous companies by 1897. The London partnership, known as Seligman Bros., was acquired by S. G. Warburg & Co. in 1957.
Developments in the twentieth century
In the early 1900s, the firm supported financing for the Panama Canal construction and underwrote securities across various sectors including railroads, steel, wire manufacturing, oil, shipbuilding, bridge construction, bicycles, mining operations, as well as international ventures in Russia and Peru. Their headquarters at 1 William Street, New York City, was built between 1904 and 1905. In 1910, William C. Durant of General Motors transferred board control to Seligman along with Lee, Higginson & Co. after they underwrote $15 million worth of corporate notes.
Between 1927 and 1929, Seligman held majority ownership of the Victor Talking Machine Company, acquired alongside Speyer & Company from founder Eldridge Johnson. This company was sold to Radio Corporation of America two years later.
In 1930, Seligman introduced its inaugural mutual fund named Broad Street Investing Co., which evolved into the Seligman Common Stock Fund. Investment banking activities diminished during the 1930s; following enactment of the Glass–Steagall Act in 1938, the firm separated its securities underwriting division into Union Securities. Union Securities merged with Eastman Dillon & Co. in 1956 to form Eastman Dillon Union Securities & Co., later acquired by Paine Webber in 1979; Paine Webber itself became part of UBS AG in 2000. Elements of J.& W. Seligman & Co. persist today as closed-end investment entity Tri-Continental Corporation (NYSE: TY) and through Seligman mutual funds.
From 1940 until 1974, J. & W. Seligman & Co.’s headquarters were located at the American Express Company Building within Manhattan’s Financial District.
In 1980, transitioning from an employee-owned partnership structure, it reorganized into a private corporation controlled by 43 employees. A $52.6 million management buyout led by directors including William C. Morris (formerly affiliated with Shearson Lehman/American Express) took place in 1989 with funding from insurance firms.
By 1991, Seligman entered a joint venture with European asset manager Henderson plc—forming Seligman Henderson Co.—to broaden its international presence. The firm moved from downtown offices at 130 Liberty Street to Park Avenue in 1993 and shifted its focus toward institutional clients after divesting its high-net-worth segment to U.S. Trust Corp. in 1995. Offshore mutual funds branded as Seligman Global Horizon Funds were launched in 1997 for non-U.S investors.
During the 1990s, Seligman experienced substantial growth; notably, the Seligman Communication & Information Fund managed by Paul Wick ranked among top performers of that decade. Conversely, its flagship Tri-Continental Corporation fund lagged during the bull market phase. The bursting of the internet bubble severely affected Seligman—the Communication & Information Fund’s assets plummeted from nearly $11 billion at its peak in March 2000 by almost half.
21st century
In 2001, the firm introduced three notable hedge funds: the Seligman Tech Spectrum Fund, followed by the Seligman Health Spectrum Fund, along with the market-neutral Seligman Spectrum Focus. By 2007, assets under management in these hedge funds exceeded $3 billion.
In November 2008, J. & W. Seligman & Co. Incorporated was acquired by Ameriprise Financial for $440 million. The hedge fund division now operates under the name Seligman Investments, whereas its mutual fund offerings have been integrated into the Columbia Threadneedle group.
Further reading
External links
- J. & W. Seligman & Co. Inc. Funding Universe
- [1] Tri-Continental Corporation