TD Cowen
| Company type | Division of TD Securities |
|---|---|
| Industry | Investment banking, Financial services |
| Predecessor | Cowen Inc. |
| Founded | 1918 in New York City, United States |
| Fate | Acquired by Toronto-Dominion Bank in 2023; rebranded as TD Cowen |
| Headquarters | New York City , United States |
Area served | Worldwide |
Key people | Jeffrey Solomon (CEO) |
| Products | Investment banking, equity and credit analysis, sales and trading, prime brokerage, outsourced trading solutions, global clearing, commission management, alternative investment management |
| Owner | Toronto-Dominion Bank |
| Parent | TD Securities |
| Website | www |
TD Cowen (previously known as Cowen Inc.) is a U.S.-based global investment bank and financial services entity operating as a division within TD Securities. The company functions through two primary areas: a broker-dealer segment and investment management.[1]
The broker-dealer segment delivers services including investment banking, equity and credit analysis, sales and trading operations, prime brokerage, outsourced trading solutions, global clearing, and commission management.
Meanwhile, the investment management division provides actively managed alternative investment offerings. Established in 1918, TD Cowen is headquartered in New York City and maintains offices worldwide. The firm is noted for its early recognition of emerging sectors, particularly the cannabis industry.[2]
In March 2023, Toronto-Dominion Bank completed the acquisition of Cowen for $1.3 billion USD, subsequently rebranding it as TD Cowen and integrating it within TD Securities.[3][4]
History
Beginning as a bond trading firm, Cowen quickly expanded into correspondent clearing and execution services. It established a strong presence in railroad bonds and developed research capabilities alongside institutional sales. Throughout the 1970s, Cowen broadened its research and retail operations by opening six offices across the United States and acquiring firms such as Hardy & Company, Greene & Ladd, G.S. Grumman, and McCloy-Watterson & Co. During the 1980s, the company extended its reach internationally with new offices in London, Geneva, Paris, and Tokyo while launching an investment banking division. The 1990s were marked by significant growth in investment banking activities, with nearly 80 IPOs and follow-on offerings raising approximately $5 billion by 1995.
In 1998, Société Générale purchased the firm, renaming it SG Cowen. Two years later, in 2000, Cowen divested its private client services to Lehman Brothers but maintained its focus on investment banking, research, and sales and trading operations. It continued under Société Générale ownership until its initial public offering spin-off in 2006 as Cowen and Company, with Credit Suisse and Merrill Lynch serving as joint bookrunners.
On August 2, 2022, Toronto-Dominion Bank agreed to acquire Cowen for $1.3 billion at $39 per share. Following this transaction, CEO Jeffrey Solomon joined TD Securities’ leadership team, with the merged organization operating under the TD Cowen brand under his leadership.
Growth acquisitions
- In 2009, Cowen combined with Ramius LLC to create a diversified financial services company.
- February 2011 marked Cowen’s purchase of LaBranche & Co., a market maker specializing in options, ETFs, and futures trading, for roughly $200 million.
- In 2012, acquisitions included Algorithmic Trading Management—focused on multi-asset algorithmic execution strategies—and KDC Securities, a securities lending enterprise.
- March 2013 saw Cowen acquire Dahlman Rose & Company LLC.
- Entering prime services in 2015 involved acquiring Concept Capital Markets and Conifer Securities.
- That same year featured the acquisition of CRT Capital Group’s credit products division along with its credit research, special situations, and emerging markets units.
- In 2017, Cowen expanded by acquiring Convergex—a brokerage specializing in agency-focused equity sales, electronic trading platforms, commission management solutions, global clearing services, and prime brokerage.
- The 2018 acquisition of Quarton International allowed Cowen to extend beyond healthcare capital markets into middle-market investment banking.
Cowen and Company
Established in 1918, Cowen and Company serves as the broker-dealer segment of Cowen Inc., delivering a range of investment banking solutions including equity, equity-linked, and debt capital raising, alongside mergers and acquisitions advisory. The firm also produces proprietary research publications like the Ahead of the Curve series, and provides institutional sales and trading as well as prime brokerage services. Its primary focus lies in growth industries such as consumer, energy, health care, industrials, information technology & services, and technology, media & telecommunications. Major divisions encompass:
- Investment Banking
- Research
- Markets
- Prime Services
Cowen Investment Management
Cowen Investment Management, originally founded as Ramius in 1994 by Peter Cohen, Jeff Solomon, Morgan Stark, and Tom Strauss, operates as the alternative investment branch of Cowen Inc. on a global scale. The firm offers a broad array of investment strategies including private health care, health care royalties, real estate, activist investing, merger arbitrage, long/short equity, and growth equity approaches. By the first quarter of 2018, it oversaw $11 billion in assets under management.
See also
- List of asset management firms
- List of CDO managers
- List of companies based in New York City
- List of hedge funds
External links
- ↑ "Cowen Announces New Brand Identity" (Press release). Business Wire. May 16, 2017.
- ↑ "Cannabis: $75B Opportunity". Retrieved 2018-10-20.
- ↑ "Canada's TD Bank to buy U.S. brokerage Cowen in $1.3 billion deal". CNBC. Retrieved 2022-08-02.
- ↑ "TD completes acquisition of Cowen Inc". TD Mediaroom (Press release). 2023-03-01.
