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46-731: Established via a series of acquisitions, including Canadian brokerage Wood Gundy and U.S.-based Oppenheimer & Co. , CIBC Capital Markets has been a leading investment bank in Canada with a notable presence in various international markets at times over the years. CIBC Capital Markets is headquartered at CIBC Square in Toronto with offices in Calgary , Montreal , Vancouver , Winnipeg , New York City , Chicago , Houston , Milwaukee , Bogota , Beijing , Hong Kong , London , Luxembourg , Singapore , Sydney and Tokyo . The original Wood Gundy company

92-625: A junk bond deal. Argosy's three major principals had worked on some of the biggest junk-bond deals of the 1980s while at Drexel Burnham Lambert. The 52 Argosy employees constituted the core of what would become CIBC's High Yield Group and CIBC Argosy Merchant Banking funds that were responsible for, among other things, the $ 1 billion windfalls that CIBC would earn from its early investments in Global Crossing . The Argosy principals also managed two collateralized debt obligation vehicles known as Caravelle Funds I and II. In 1997, CIBC Wood Gundy, under

138-447: A $ 175 million that was paid in the course of over three years to help retain key executives from the firm. By 1999, CIBC Oppenheimer changed its name to CIBC Capital Markets and positioned itself as CIBC's international investment bank. The CIBC Capital Markets unit suffered a net loss of C$ 186 million during the fourth quarter of fiscal 1998 which dragged down the performance of the parent bank's stock by almost one-third. The loss in 1998

184-481: A former team from Drexel Burnham Lambert, does not signal an end to Trimaran, which will continue on as an independent entity. Bloom and Kehler had founded the PE firm in 1995. The jump back to corporate credit is not big leap for Bloom and Kehler. At Trimaran, the pair also oversaw Trimaran Advisors, which invests in below investment-grade corporate debt. David Millison, also a Drexel alum, had managed those funds for Trimaran as

230-528: A major leveraged finance business in the U.K. In the aggregate, these businesses had several hundred employees in the United States, Canada and the U.K. In 1997, the CIBC Argosy Merchant funds backed Gary Winnick and his telecom venture, Global Crossing , which embarked on a project to build optical fiber cable connections under the ocean between Europe and North America. Bloom, Heyer and Kehler,

276-534: A major part of CIBC Capital Markets' U.S. Investment Banking, Corporate Syndicate, Institutional Sales and Trading, Equity Research, Options Trading and a portion of the Debt Capital Markets business which includes Convertible Bond Trading, Loan Syndication, High Yield Origination, and Trading as well as related operations located in the UK, Israel, and Hong Kong. The deal closed January 14, 2008, and essentially reunited

322-466: A merchant ship, or a fleet of such ships and caravelle , a small, highly maneuverable, two- or three-masted ship. Trimaran Capital Partners was founded in 2000 by former Drexel Burnham Lambert and CIBC World Markets investment bankers Jay Bloom, Andrew Heyer, and Dean Kehler. The firm traces its roots back to the 1995 creation of the CIBC Argosy Merchant funds, a series of merchant banking investment funds managed on behalf of CIBC , and before that to

368-421: A niche raising high yield debt. In April 1995, CIBC's investment banking subsidiary, then known as CIBC Wood Gundy announced the acquisition of The Argosy Group, The acquisition of Argosy marked an aggressive push by CIBC into the U.S. investment banking business. Prior to that point, CIBC had never done a junk bond deal. Argosy's three major principals had worked on some of the biggest junk bond deals of

414-674: A number of leveraged buyouts including Reddy Ice (with Bear Stearns Merchant Banking ), Norcraft (with Saunders Karp & Megrue ) Trimaran made a series of investments in 2004 including: jewellery retailer Fortunoff , specialty apparel retailer Urban Brands ( Ashley Stewart clothing) and auto parts manufacturer Accuride Corporation . In 2005, Trimaran would add Charlie Brown Steakhouse, which would later acquire Bugaboo Creek Steak House in 2007. Trimaran would also make investments in Jefferson National and Broadview Networks among others. Trimaran initially attempted to raise

460-436: A partnership, the firm incorporated in 1925. Following World War II , Wood Gundy expanded its operations, starting to underwrite and distribute securities of Canadian corporations. Continued growth was driven through Canada's increasing industrialization and growing population, leading to greater demand for capital and investment securities. This expansion transformed Wood Gundy into a full-service investment house. Wood Gundy

506-821: A result of these developments, the CIBC implemented a strategy to reallocate resources and capital away from the riskier CIBC World Markets division in favor of its retail operations. As part of this reallocation, and in an effort to reduce conflicts between the bank's principal investments and its financial sponsor clients, the Trimaran operations would subsequently spinout completely from CIBC World Markets. Trimaran Capital Partners became independent of CIBC in February 2006 Although Trimaran had made some investments in telecom and internet startups in 2000 and had also made investments in companies such as Iasis Healthcare and Village Voice Media ,

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552-453: A spinout of a portion of its team to form Mistral Equity Partners In 2008, the two remaining managing partners entered into a venture with Nelson Peltz ’s Trian to create a new debt-focused business development company . The firm is named for the trimaran , a multi-hulled boat consisting of a main hull and two smaller outrigger hulls. The firm's principals had used nautical terms to describe their predecessor entities including argosy ,

598-412: A third, $ 1.25 billion fund in 2004, but existing limited partners expressed dissatisfaction with the fact that the firm had not fully invested its existing fund and had yet to produce sufficient realizations to merit a new commitment. Although Trimaran is still in operation managing its existing investment funds, the key professionals in the firm have embarked on a number of different ventures. Following

644-877: Is a middle-market private equity firm formerly affiliated with CIBC World Markets . Trimaran is headquartered in New York City and founded by former investment bankers from Drexel Burnham Lambert . Trimaran's predecessors were early investors in telecom and Internet businesses, most notably backing Global Crossing in 1997. Trimaran also led the first leveraged buyout of an integrated electric utility. Since 1995, Trimaran and its successor entities have invested approximately $ 1.6 billion of equity in fifty-nine companies through transactions totaling more than $ 10 billion in total value. In addition, Trimaran's debt business has managed approximately $ 1.5 billion of leveraged loans across four collateralized loan obligation vehicles. Since 2006, one of its co-founders, Andrew Heyer, lead

690-418: Is known as CIBC World Markets , and the name CIBC Wood Gundy is used as the brand for the bank's retail brokerage business. Wood, Gundy & Company was established in Toronto, Ontario , in 1905 by George Herbert Wood and James Henry Gundy . The firm first specialized in the distribution and underwriting of government and municipal bonds. In 1919, the firm opened an office in New York City . Founded as

736-605: The Royal Bank of Canada , however these deals fell apart in the middle of the year due to high price expectations. The firm was impacted by the 1987 stock market crash in October 1987 and intensified its efforts to find a buyer. CIBC purchased a 60 percent stake in Wood Gundy in June 1988 for C$ 110 million (US$ 86 million), representing a total value of the firm of C$ 183 (US$ 143 million). At

782-538: The 1980s while at Drexel Burnham Lambert. The 52 Argosy employees that CIBC acquired would constitute the core of what would become CIBC's High Yield Group and the CIBC Argosy Merchant Banking funds that were responsible for, among other things, the $ 2 billion windfall that CIBC would earn from its early investments in Global Crossing . The Argosy principals also managed two collateralized debt obligation vehicles known as Caravelle Funds I and II. With

828-432: The 1990 founding of the boutique investment banking firm The Argosy Group. The Argosy Group was a New York-based boutique investment bank founded in February 1990, and is Trimaran's earliest predecessor. Founded as a 9-person advisory firm by Bloom, Heyer, and Kehler, Argosy was one of several private equities and investment banking firms to spring up in the wake of the collapse of Drexel Burnham Lambert . Before Drexel,

874-648: The Oppenheimer & Co. name. Also in September 2003, a jury found that CIBC had failed to provide complete financial information to investors in a high-yield bond offering. Just a few months later, at the end of 2003, CIBC reached an $ 80 million settlement with the Securities and Exchange Commission over its various financings for Enron , representing far more than the bank had earned in fees. In November 2007, Oppenheimer & Co. (Fahnestock) announced that it would purchase

920-541: The acquisition of The Argosy Group , a New York-based investment banking firm involved primarily in the high-yield debt market. Argosy had been founded by three Drexel Burnham Lambert alumni: Jay Bloom, Andrew Heyer, and Dean Kehler, who had worked together in Drexel's New York office in the 1980s. The acquisition of Argosy marked an aggressive push by CIBC into the US investment banking business. Prior to that point, CIBC had never done

966-765: The acquisition of Argosy in 1995 and Oppenheimer & Co. in 1997, the center of gravity of CIBC's investment banking operations began to shift toward the United States. CIBC's High Yield Group began to develop a reputation for financing complex leveraged buyout transactions and worked closely with several of the leading private equity firms. CIBC provided financing for many of the leading private equity firms of this period including: Apollo Management , Hicks Muse , Kohlberg Kravis Roberts & Co. , Thomas H. Lee Partners , and Willis Stein & Partners . Bloom, Heyer and Kehler took on increasing responsibilities within CIBC World Markets. Ultimately, as Vice Chairmen of

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1012-408: The bank and co-heads of Leveraged Finance, the three Argosy founders had responsibilities for leveraged loan and high-yield sales, trading and research, debt private placements, restructuring advisory and financial sponsor coverage. They were also responsible for the creation and management of multiple special situations investment funds and collateralized debt obligation funds, and the creation of

1058-457: The bank's profits in 2000. Trimaran was founded in 2000, effectively on the back of the success of the Global Crossing investment. In April 2001, Trimaran closed on a $ 1 billion fund with capital provided primarily by CIBC. The investment banking operations of CIBC World Markets reached their peak in 1999 and 2000, when the bank cracked the top ten of U.S. issuers of high yield bonds and

1104-407: The bulk of its capital from its $ 1 billion 2001-vintage private equity fund was uninvested after its first year and a half. From the end of 2002 through mid-2005, Trimaran actively pursued new investments. In December 2002, Trimaran partnered with Kohlberg Kravis Roberts & Co. to purchase the transmission business subsidiary, ITC Transmission , from DTE Energy . In 2003, Trimaran completed

1150-478: The bushes for money for the larger fund. Fundraising for both is slated to start later this year, according to a source close to Trimaran. Without Heyer, Trimaran was never successfully raised. Mistral formed a partnership with the Schottenstein family , which has acquired well-known retailers such as American Eagle Outfitters , DSW Shoe Warehouse and Filene's Basement . The family made an equity commitment to

1196-544: The corporate finance practices of Deloitte and KPMG . Wood Gundy Wood Gundy Inc. was a leading Canadian stock brokerage and investment banking firm. Founded in 1905, it was acquired by the Canadian Imperial Bank of Commerce in 1988 as it attempted to build an investment banking business. The Wood Gundy name was used extensively by the bank's investment banking arm, which was known as CIBC Wood Gundy until 1997. Today, CIBC's investment banking business

1242-463: The direction of Michael S. Rulle, acquired the American brokerage house Oppenheimer & Co. for $ 585 million. Subsequently, the merged companies were called CIBC Oppenheimer; Rulle remained the chairman and chief executive of the company while Stephen Robert and Nathan Gantcher of Oppenheimer became vice-chairmen of CIBC Oppenheimer. According to the deal, CIBC paid $ 350 million and additionally provided

1288-572: The failure of Trimaran to raise its third fund, in March 2007, Andrew Heyer, one of the three founders of Trimaran, left the firm to launch a new buyout firm. Mistral Equity Partners was founded with a team from Trimaran to make investments in the consumer and retail industries. Mistral successfully raised an approximately $ 300 million fund Trimaran Capital Partners III has a preliminary target range of $ 700 million to $ 1 billion. Trimaran plans to raise an interim $ 300 million to make deals happen while beating

1334-472: The heads of the CIBC Argosy Merchant funds and all former Drexel bankers, were former associates of Winnick from his days in the 1980s as a salesman at Drexel Burnham Lambert under Michael Milken . They were also instrumental in providing Global Crossing with $ 35 million in equity financing before the company went public. CIBC would ultimately realize a gain estimated to be $ 2 billion from its relatively small equity investment in Global Crossing, making it one of

1380-418: The investment holding business, was named "Wood Gundy Holdings Limited". These two firms existed until the early 1970s, when they reunited as a single firm under the name "Wood Gundy Limited". At this time, Charles Gundy, the son of the founder, was Chairman. Wood Gundy remained the largest brokerage and securities firm in Canada until the early 1980s, when the merger of Dominion Securities and A.E. Ames created

1426-428: The largest brokerage firm in Canada. In 2001, CIBC would buy the remainder of Merrill's Canadian business. In 1997, CIBC Wood Gundy acquired the U.S. brokerage house Oppenheimer & Co. After the acquisition the U.S. division took the name CIBC Oppenheimer, eliminating the use of the Wood Gundy brand through much of the bank. Chair President Trimaran Capital Partners Trimaran Capital Partners

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1472-485: The largest firm in the country. By the mid-1980s, Wood Gundy, which was owned by approximately 600 of its employees, was looking for a merger partner. In 1986, Wood Gundy had nearly merged with Gordon Capital Corporation, but that deal was aborted at the last minute. By 1987, there were a number of banks actively pursuing a deal with Wood Gundy, including First National Bank of Chicago , the Union Bank of Switzerland and

1518-427: The most profitable investments by a financial institution in the 1990s. The investment is also thought to have personally generated millions of dollars for Bloom, Heyer and Kehler. CIBC's investment in Global Crossing provided a considerable boost for its investment banking operations in the U.S. and for Bloom, Heyer and Kehler. In fact, CIBC's gain on its investment in Global Crossing would represent more than 20% of

1564-473: The new Mistral fund, and Jay Schottenstein assumed a part-time advisory role with the firm. Trimaran Partners, Jay Bloom and Dean Kehler, co-founders and managing partners of the private equity firm, have reportedly struck out on a venture with the Nelson Peltz-led hedge fund Trian Partners , investing in distressed corporate bonds, bank loans, and possible loan-to-own opportunities. The move, reuniting

1610-655: The original Oppenheimer & Co. which CIBC divided into the sale to Fahnestock. On February 29, 2008, CIBC Capital Markets Chairman and Chief Executive Officer Brian Shaw was replaced in both capacities by Richard Nesbitt , a former TSX Group CEO. CIBC Capital Markets faces competition from major global investment banks such as Goldman Sachs , Morgan Stanley and the RBC Capital Markets , equivalent branches of other financial conglomerates such as BMO Capital Markets , and TD Securities , and other independent/boutique investment banks and large cap advisory firms such as

1656-544: The rapid decline of the bank from the peaks of Wall Street's league table rankings. At the same time, the High Yield Group was restructured with the original Argosy Group founders focusing their responsibilities on their new Trimaran Capital Partners fund and the older CIBC Argosy Merchant funds. Bloom, Heyer and Kehler were succeeded by managing directors Edward Levy and Bruce Spohler, who had worked previously at Argosy and Drexel, together with Bill Phoenix. By 2002, as

1702-654: The three bankers had all worked together at Shearson Lehman Brothers . Kehler and Bloom had worked together previously at Lehman Brothers Kuhn Loeb and were joined by Heyer when Lehman was acquired by Shearson/American Express . The Argosy team had been involved in many of the most prominent high yield financings of the preceding two decades, for companies including RJR Nabisco , Beatrice Foods , and Storer Communications . The Argosy Group focused on debt underwriting, private placements, sales and trading, proprietary special situation investing, and restructuring advisory assignments for highly leveraged companies. Argosy created

1748-490: The three heads of its CIBC Argosy Merchant Banking funds in a new private equity operation known as Trimaran Capital Partners . Trimaran closed on a $ 1 billion fund in April 2001, with capital provided primarily by CIBC. In June 2001, CIBC announced the construction of a new $ 800 million office tower at 300 Madison Avenue (At the corner of Madison Avenue and 42nd Street). The 35-story, 1,200,000-square-foot (110,000 m) building

1794-627: The time of its acquisition, Wood Gundy was the leading Canadian investment dealer. Following the acquisition, CIBC formed CIBC Wood Gundy , which offered primarily asset management services for corporate and institutional clients. Two years later, in 1990, CIBC continued to expand in the Canadian securities business by acquiring much of Merrill Lynch & Company's Canadian securities business. The acquisition included 20 offices and between 700 and 800 employees as well as access for CIBC to Merrill's equity research . The transaction made Wood Gundy once again

1840-506: The top twenty in mergers and acquisitions advisory. From 1995 through 2000, the High Yield Group at CIBC World Markets had grown to more than 120 and had raised more than $ 80 billion of high yield debt. Following the crash of the dot-com bubble and the shutdown of the high yield markets in late 2000, CIBC World Markets began to suffer a series of setbacks. In July 2001, the Wall Street Journal profiled CIBC World Markets, chronicling

1886-417: The top twenty in mergers and acquisitions advisory. In 1999, CIBC Capital Markets backed Gary Winnick and his company Global Crossing to build optical fiber cable connections under the ocean. In 2000, CIBC realized a gain of $ 2.0 billion from its relatively small equity investment in Global Crossing, representing more than 20% of the bank's profits. On the back of the success in Global Crossing, CIBC backed

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1932-414: Was due primarily to very rapid expansion into regions impacted by the various financial crises in 1998. As a result, CIBC Capital Markets refocused its efforts primarily on the U.S. and Canadian markets, despite the seemingly global ambitions implied in the unit's name. CIBC Capital Markets reached a peak in 1999 and 2000, when the investment bank cracked the top ten of U.S. issuers of high yield bonds and

1978-687: Was established in Toronto in 1905 by George Herbert Wood and James Henry Gundy . CIBC purchased a majority stake in Wood Gundy in June 1988 for C$ 203.3 million. After the purchase, the CIBC formed CIBC Wood Gundy, which offered asset management services for corporate and institutional clients. Two years later, in 1990, they continued to expand the Canadian securities business by acquiring much of Merrill Lynch & Company's Canadian business. In 1997, Wood Gundy acquired Eyers Reed, an Australian broker firm for $ 20 million. In April 1995, CIBC Wood Gundy announced

2024-575: Was forced to set aside C$ 1.5 billion for bad corporate loans, primarily from CIBC Capital Markets and the bank was linked two of the most famous victims of the corporate accounting scandals of the early 2000s: Enron Corporation and Global Crossing . As a result of these developments, the parent bank implemented a strategy to reallocate resources away from the riskier CIBC Capital Markets division in favor of its retail operations. As part of this strategy, in 2003, CIBC sold an asset management division along with retail brokerage to Fahnestock Viner along with

2070-454: Was originally expected to house up to 3,000 employees, bringing CIBC's entire New York staff under one roof. When the 300 Madison building was completed in 2004, CIBC's diminished workforce took up only a few floors, leasing the remainder to PriceWaterhouseCoopers . In July 2001, The Wall Street Journal profiled CIBC Capital Markets, chronicling the rapid decline of the bank from the peaks of Wall Street's league table rankings. By 2002, CIBC

2116-529: Was the first Canadian dealer to open an office in Tokyo, and the first firm to employ a female trader on the floor of the Toronto Stock Exchange . The operations of the company, then called "Wood, Gundy & Company Limited", were split into two newly incorporated companies in 1962. The first, responsible for investment dealer operations, was called "Wood Gundy Securities Limited". The second, responsible for

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