Leerink Partners

Last updated
Leerink Partners LLC
Formerly
  • Leerink Swann (1995–2014)
  • SVB Leerink (2019–2022)
  • SVB Securities (2022–2023)
Company type Private
Industry Financial services
Founded1995;29 years ago (1995)
FounderJeffrey A. Leerink
Headquarters Exchange Place
Boston, Massachusetts, U.S.
Products Investment banking
Parent SVB Financial Group (2024) Silicon Valley Bank (2024)
Website leerink.com

Leerink Partners LLC is an independent investment bank providing healthcare companies and investors with financial services including M&A advisory, equity and debt capital markets, proprietary research, and sales and trading capabilities. [1] The firm was founded in 1995 by Jeffrey A. Leerink, and is headquartered in Boston, with offices in New York City, San Francisco, Charlotte, [2] and Nashville. [3]

Contents

History

Leerink Partners was founded in 1995 as Leerink Swann LLC. [2] [4] The following year, the bank established MEDACorp expert network as a joint venture with Dr. Dan Dubin. [2] It acted as a strategic knowledge resource at Leerink, using validation of new products and commercial viability in the assessment of company financials, and corporate due diligence in the medial field as part of a merger and acquisition advisory or capital raising. [2]

In 1999, Inc. named the bank as one of America's 500 fastest growing private companies. [5]

In 2009, the firm expanded its investment banking footprint when 25 senior healthcare bankers joined the firm from Merrill Lynch. [1] [6]

A 2010 probe into expert network focused on potential for conflict of interest and insider dealings through expert network across the entire industry. [7] The U.S. Securities and Exchange Commission (SEC) investigated a 2009 merger between Cougar Biotech and Johnson & Johnson in which Leerink advised Cougar. [8] MedaTech client SAC Capital had been an investor in Cougar Biotech. The focus of the investigation was whether any information about the transaction flowed from Leerink via MedaTech to SAC. [8] According to Leerink, the firm operated strict information barriers. [9] Speculations about MedaTech's shut down as part of the investigation proved unfounded. [10] [11]

In 2012, the SEC charged a former Leerink analyst for insider trading. The analyst had obtained confidential information about a merger transaction Leerink was working on and passed this information on to a friend to place trades on his behalf. The analyst gained around $600,000 from this investment and was later sentenced for insider trading. [12] [13]

In 2014, Leerink Swann was rebranded as Leerink Partners LLC. [14] Leerink Partners was acquired by SVB Financial Group in 2019 and rebranded SVB Leerink. [15]

In 2015, the firm established a specialty pharmaceuticals and services franchise. [1] [6]

In 2016, the firm established a convertible capital markets business. [1] [6]

In 2019, Leerink Partners established alternative equities and ATM businesses. [1] [6]

In 2021, SVB acquired media and telecom research company MoffettNathanson LCC. [16] Further, SVB Leerink was rebranded as SVB Securities LLC. [17] In the same year, the firm hired Barry Blake as Global Co-Head of Investment Banking with a focus on Healthcare Services & Technology. [1] [6] In 2021, the firm also expanded its leadership within the financial sponsor and leveraged finance sector and added five senior bankers to its healthcare services franchise. [1] [6]

Following the collapse of Silicon Valley Bank in March 2023, the management of SVB Securities planned to buy back their firm from the parent group. [18]

On March 17, 2023, SVB Securities' parent company filed for Chapter 11 bankruptcy, but SVB Securities itself was not included in the Chapter 11 filing. [19]

On June 18, 2023, SVB Financial Group agreed to sell SVB Securities in a management buyout led by the latter's CEO, Leerink. The deal, backed by funds managed by the Baupost Group, includes $55 million in cash besides repayment of $26 million in debt and assumption of other liabilities. MoffettNathanson LLC was not included in the sale. [20] In July 2023, the buyout was approved in bankruptcy court, and SVB Securities was renamed to Leerink Partners. [21]

Services

The firm advises on M&A advisory, capital markets, leveraged and private capital markets. [1] [6] For investors, the firm provides experience in the healthcare sector through equity research, institutional equities, and corporate access. [1] The firm serves many clients focusing on biopharma, digital health & health tech, healthcare services, medical technology, tools & diagnostics and more. [1] [6]

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References

  1. 1 2 3 4 5 6 7 8 9 10 Philips, Nancy (20 November 2023). "Leerink Partners: The Story of One of Boston's Prominent Investment Bank". Global World Technology. Retrieved 21 January 2024.
  2. 1 2 3 4 Groysberg, Boris; Healy, Paul M. (2013-08-07). Wall Street Research: Past, Present, and Future. Stanford University Press. ISBN   978-0804787123.
  3. ↑ Stinnett, Joel (August 25, 2021). "Senor Reporter". Nashville Business Journal. Retrieved July 12, 2023.
  4. ↑ "Leerink Overview". Vault. Vault. Retrieved 7 September 2017.
  5. ↑ "Business News: The Denver Post". extras.denverpost.com. Retrieved 2017-09-07.
  6. 1 2 3 4 5 6 7 8 "How Leerink Partners Became the Go-To Bank for Healthcare Companies". San Francisco Examiner . 21 December 2023. Retrieved 21 January 2024.
  7. ↑ "New caution on role of expert networks". Reuters. 10 December 2010. Retrieved 2017-09-07.
  8. 1 2 "SAC and Leerink Swann Under SEC Investigation • Integrity Research". Integrity Research. 2011-10-20. Retrieved 2017-09-07.
  9. ↑ "Expert networks give investors an edge - The Boston Globe". BostonGlobe.com. Retrieved 2017-09-07.
  10. ↑ Strasburg, Jenny (2010-12-10). "Probes Lead Leerink Bank To Reconsider 'Expert' Unit". Wall Street Journal. ISSN   0099-9660 . Retrieved 2017-09-07.
  11. ↑ "The "Expert Network" Used By SAC Capital, Diamondback, Frontpoint And Citadel Is Closing". Business Insider. Retrieved 2017-09-07.
  12. ↑ "SEC.gov | SEC Charges Investment Bank Analyst with Illegally Tipping College Friend About Nonpublic Merger Deals". www.sec.gov. Retrieved 2017-09-07.
  13. ↑ "S.F. banker guilty of insider trading". SFGate. Retrieved 2017-09-07.
  14. ↑ "Leerink Swann Is Now Leerink Partners". Businesswire. 6 January 2014. Retrieved 7 September 2017.
  15. ↑ Group, SVB Financial. "SVB Financial Group Completes Acquisition of Healthcare Investment Bank Leerink Partners". www.prnewswire.com (Press release). Retrieved 2019-01-31.
  16. ↑ Sherman, Alex (13 December 2021). "Silicon Valley Bank agrees to acquire boutique media and telecom research firm MoffettNathanson". CNBC . Retrieved 13 December 2021.
  17. ↑ "SVB Leerink LLC Announces Company Name Change to SVB Securities LLC". Leerink Partners. 1 February 2022. Retrieved 1 February 2022.
  18. ↑ Monks, Matthew; Tan, Gillian; Natarajan, Sridhar (2023-03-11). "SVB Securities Management Exploring Buying Firm Back" . Bloomberg News.
  19. ↑ "SVB Financial seeks bankruptcy protection". Reuters. March 17, 2023. Retrieved March 17, 2023.
  20. ↑ Sebastian, Dave (June 19, 2023). "SVB Securities to Be Acquired in Management Buyout" . The Wall Street Journal. Archived from the original on June 19, 2023.
  21. ↑ Chesto, Jon (July 17, 2023). "How Boston's biggest investment bank was reborn after SVB collapsed" . The Boston Globe. Archived from the original on July 17, 2023.
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