Stifel
| Company type | Public |
|---|---|
| Industry | Investment banking, Financial services |
| Founded | July 1983 |
| Headquarters | St. Louis, Missouri , United States |
Key people | Ronald J. Kruszewski (CEO) |
Number of employees | 7500+ (2019) |
| Website | stifel |
Stifel Financial Corp. is a U.S.-based global independent investment bank and financial services firm, founded under the Stifel brand in July 1983 and publicly traded on the New York Stock Exchange since November 24, 1986. Its roots date back to 1890 with the establishment of the Altheimer and Rawlings Investment Company, headquartered in downtown St. Louis, Missouri.
Operating through fully owned subsidiaries, Stifel delivers securities-related financial services across the United States and Europe. Its principal entities include Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus) in the U.S., a comprehensive retail and institutional brokerage and investment banking organization; Stifel Nicolaus Canada Inc.; and Stifel Nicolaus Europe Limited (SNEL), serving clients in the UK and broader European markets. Additional affiliates encompass Thomas Weisel Partners LLC (TWP), Stifel Independent Advisors (an independent contractor broker-dealer), and Stifel Bank & Trust, which provides both retail and commercial lending solutions. Trust and fiduciary services are offered through Stifel Trust Company, N.A.
Acquisition history
Stifel has pursued a growth strategy centered on acquisitions that have expanded its market presence, diversified its offerings, and extended its geographic footprint:
- In 2005, it acquired Legg Mason Capital Markets from Citigroup, incorporating investment banking, equity and fixed income research, sales, and trading operations spanning 22 offices in the U.S. and Europe with approximately 500 employees—elevating Stifel to a national platform.
- The 2006 acquisition of Miller Johnson Steichen Kinnard's Private Client Group added seven branches and 50 financial advisors.
- By acquiring Ryan Beck & Co. in 2007, Stifel significantly increased its East Coast presence with 43 offices across 14 states and about 1,100 staff; concurrently, it became a bank holding company through the purchase of First Service Financial Company and FirstService Bank.
- The purchase of Butler Wick & Company in 2008 expanded its locations into Ohio, Pennsylvania, and New York.
- In 2009, it integrated 56 branches acquired from UBS Wealth Management Americas to broaden its distribution network.
- The 2010 acquisition of Thomas Weisel Partners Group enhanced its U.S. equity research capabilities and institutional equity business both domestically and internationally.
- Stone & Youngberg LLC was acquired in 2011 to strengthen expertise in municipal finance and fixed income markets.
- The strategic merger with Keefe, Bruyette & Woods (KBW) in 2012 augmented its investment banking services; that same year it acquired Miller Buckfire to add restructuring advisory capabilities.
- Stifel entered the London market in 2014 by acquiring Oriel Securities.
- In June 2015, it purchased Barclays’ U.S. wealth and investment management division along with ISM Capital LLP (specializing in debt capital markets) and Sterne Agee Group (offering investment banking, brokerage, and wealth management).
- Eaton Partners LLC, a placement agent firm, was acquired in January 2016.
- Ziegler Wealth Management was added to its portfolio in March 2018.
- November 2018 marked the acquisition of German bank MainFirst AG to enhance European operations.
- In 2019, it further expanded by acquiring First Empire Holding Corp. along with its subsidiaries.
- Most recently, November 2021 saw the completion of the acquisition of Vining Sparks, a Memphis-based fixed income brokerage firm.
These acquisitions have played a pivotal role in Stifel’s expansion strategy by broadening product offerings, increasing geographic reach, and strengthening its position within the investment banking sector.
Overview
By 2019, Stifel Financial Corp. had a workforce exceeding 7,500 employees spread across more than 400 locations worldwide.
- The Chief Executive Officer is Ronald J. Kruszewski.
- The main corporate office is located in St. Louis, Missouri.
- Capital markets operations are headquartered in Baltimore, Maryland, and London, England.
- Investment Banking
- Research
Stifel stands as the foremost provider of US equity research, delivering insights on both equity and fixed income securities.
- Institutional Sales & Trading
- Global Wealth Management
- Employs over 2,000 Financial Advisors operating from upwards of 300 offices
- Holds assets exceeding $3 billion within Stifel Bank & Trust
Organization
Stifel Financial Corp.’s business is divided into three primary segments: Global Wealth Management, Institutional Group, and Other.
Major locations
- St. Louis, Missouri – global corporate headquarters
- Baltimore, Maryland – capital markets center
- San Francisco, California
- New York City, New York
- Washington D.C., District of Columbia
- London, United Kingdom – headquarters for European market activities
Securities and Exchange Commission lawsuit
In August 2011, Stifel Nicolaus was sued by the Securities and Exchange Commission for allegedly marketing $200 million worth of unsuitable securities tied to collateralized debt obligations to five school districts in Wisconsin. The SEC asserted that the firm misrepresented associated risks, which contributed to credit rating downgrades and losses affecting retirement funds for school employees. Stifel denied any misconduct and committed to a robust defense. According to the SEC, Stifel had assured investors that these securities were highly secure, although their value rapidly deteriorated. In March 2012, Stifel and the affected school districts agreed to jointly file a $200 million lawsuit against Royal Bank of Canada for alleged misrepresentation. RBC had earlier settled with the SEC for $30.4 million in September 2011. As of December 2013, Stifel was continuing its legal proceedings against RBC.