The firm was named after Jacob Schiff and J.P. Morgan although the firm had no affiliation with either individual.
History
After a power struggle with Jeff Beck, Phillip Ean Cohen left Oppenheimer & Co. to start his own firm. Cohen was offered $1billion seed funding from Michael Milken, but refused. Despite this, Morgan Schiff initially operated as the Private Equity arm for Drexel Burnham Lambert, and was located directly under Milken's office. Cohen decided to name his firm after two important historical figures on Wall Street, despite their complete lack of affiliation with the firm. When Business Week asked Cohen about the name, he replied, "It was my belief that investment banks should go back to advising clients in a closer format, as in the days of J.P. Morgan and Jacob Schiff." Cohen was considered one of the top minds in Mergers and Acquisitions, and was able to recruit many of his corporate clients from his days at Kuhn Loeb, Lehman Brothers, First Boston, Oppenheimer, and Drexel Burnham Lambert.[2] One of these clients was Zale Corporation, which used Morgan Schiff as an adviser on a $500million Merger, officially becoming the company's first transaction.
In 1986, despite only having 12 employees and just two partners, Morgan Schiff was one of the 50 largest Mergers and Acquisitions firms in the world[1] The firm continued to grow, eventually opening an office in San Francisco. Morgan Schiff suffered a major set back when one of its largest portfolio companies Friedman's Inc. declared bankruptcy after an SEC investigation found that the company's CEO and CFO lied about the liquidity of their short term customer loan program. The firm eventually closed its doors in 2004.[citation needed]
Art dealer Andy Valmorbida worked at the firm before establishing his gallery.[3]
Michael Robert Milken is an American financier. He is known for his role in the development of the market for high-yield bonds, and his conviction and sentence following a guilty plea on felony charges for violating U.S. securities laws. Milken's compensation while head of the high-yield bond department at Drexel Burnham Lambert in the late 1980s exceeded $1 billion over a four-year period, a record for U.S. income at that time. With a net worth of US$6 billion as of 2022, he is among the richest people in the world.
A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. The use of debt, which normally has a lower cost of capital than equity, serves to reduce the overall cost of financing the acquisition. This is done at the risk of magnified cash flow losses should the acquisition perform poorly after the buyout.
CIBC Capital Markets is the investment banking subsidiary of the Canadian Imperial Bank of Commerce. The firm operates as an investment bank both in Canadian and global equity and debt capital markets. The firm provides a variety of financial services including equity and debt capital market products, mergers and acquisitions, global markets, merchant banking, and other investment banking advisory services.
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J.P. Morgan & Co. is an American financial institution specialized in investment banking, asset management and private banking founded by financier J. P. Morgan in 1871. Through a series of mergers and acquisitions, the company is now a subsidiary of JPMorgan Chase, one of the largest banking institutions in the world. The company has been historically referred to as the "House of Morgan" or simply Morgan. For 146 years, until 2000, J.P. Morgan specialized in commercial banking, before a merger with Chase Manhattan Bank led to the business line spinning off under the Chase brand.
John Adams Morgan is an American sailor and Olympic champion and the founder and chairman of Morgan Joseph. His father, Henry Sturgis Morgan, was the co-founder of Morgan Stanley and his great-grandfather was J. P. Morgan, founder of J.P. Morgan & Co.
The history of private equity, venture capital, and the development of these asset classes has occurred through a series of boom-and-bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks.
JLL Partners is an American private equity firm focused on leveraged buyout transactions and leveraged recapitalizations of middle-market companies. The firm is headquartered in New York City, and was founded in 1987. Since its founding JLL Partners has committed approximately $4.7 billion across seven funds. JLL invests in various industries including food and consumer products, automotive parts, health care, media and telecommunications, commodity and specialty chemicals, building products, transportation, and industrial manufacturing and distribution. The company tends to focus on companies requiring an operational turnaround.
Private equity in the 1980s relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.
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Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward Shearson and the firm he founded, Shearson Hammill & Co. Among Shearson's most notable incarnations were Shearson / American Express, Shearson Lehman / American Express, Shearson Lehman Brothers, Shearson Lehman Hutton and finally Smith Barney Shearson.
Crescent Capital Group is a global alternative investment firm focused on below investment grade credit markets with primary strategies that include funds that invest in leveraged loans, high-yield bonds, mezzanine debt, special situations, and distressed securities. The firm has approximately $40 billion of assets under management and has made investments in over 190 companies since its inception as well as expanded into the European market with operations based in London.
Phillip Ean Cohen is an Australian private equity investor. He was featured in Rainmaker by Anthony Bianco.
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The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders, by Wall Street Journal writer Connie Bruck, largely recounts the rise of Michael Milken, his firm Drexel Burnham Lambert, and the leveraged buyout boom they helped to fuel in the 1980s.
Frederick H. Joseph was the former president and chief executive officer of the investment bank Drexel Burnham Lambert during the 1980s.
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Keith Reginald Harris is a London-based investment banker and financier with a 30-year career as a senior corporate finance and takeover advisor, having held senior executive positions at leading institutions Morgan Grenfell, Drexel Burnham Lambert, Apax Partners, and HSBC Investment Bank. He is a private equity investor with interests in varied private equity holdings in financials, media, and sport.
Harriman, Ripley and Company was an investment bank created by the partners of Brown Brothers Harriman after the passage of the Glass Steagall Act mandated firewalls between commercial banks and investment banks. Brown Brothers Harriman positioned itself into a private bank while Harriman Ripley engaged in the marketing and underwriting of securities. Employees were recruited primarily from Brown Brothers Harriman, and also from the National City Bank.
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