William Blair & Company
Encyclopedia
William Blair & Company is privately held employee-owned financial services firm that provides investment banking
, equity research, brokerage, asset management and private capital
services.
William Blair & Company, L.L.C. was founded in 1935. The firm has approximately 920 employees and is based in Chicago
with offices in London
, San Francisco, Tokyo
, Liechtenstein
and Zurich
.
The firm has broad employee ownership, with 173 principals, a large percentage of the professional staff and over $130 million of equity capital.
and Francis A. Bonner who had worked together at investment firm Lee, Higginson & Co.
, prior to its collapse in 1932-1933.
In its early days it assisted the growth of the Household Finance Corporation
, Continental Casualty and Continental Assurance companies (today CNA Insurance). The firm focused on raising capital, primarily for midwestern growth-oriented companies, through its own originated issues rather than distribute securities for larger Wall Street based investment banks.
In 1941 Bonner left the company, and it was renamed William Blair & Company. The firm was managed by five partners: William Blair, Wallace Flower, Donald Miehls, Lee Ostrander and Daniel Ritter.
In 1946 Blair's sons, William McCormick Blair, Jr.
, Edward McCormick Blair and Bowen Blair joined the firm. Blair, Sr. stepped down as managing partner in 1961, and handed the reins over to his son Edward. William M. Blair
remained a senior partner of William Blair & Co. until his death in 1982 (age 97).
Under Edward Blair and Edgar D. Jannotta (managing partner from 1977 to 1994) the firm experienced two difficult periods: the late 1960s, when the inability to process trades resulted in a paper crunch that threatened the industry with shutdown, and the 1970s, when the market value of securities and underwriting activity declined substantially. The firm continued to help finance growth companies completing initial public offering
s for companies such as Molex
, Oil-Dri Corporation and Safety-Kleen
during the 1970s.
In the 1980s, the firm generally avoided many of the hottest areas including underwriting junk bonds, hostile takeovers and merger arbitrage. The company expanded its geographic reach, opening additional offices in London
and Liechtenstein
to better serve international clients. It enlarged its corporate client base to encompass more companies throughout the United States beyond the midwest and extended its corporate financial services.
During the 1990s, business continued to expand dramatically. Between 1991 and 1996 William Blair & Company lead managed or co-managed 196 equity underwriting transactions representing $13.6 billion in capital. William Blair & Company also expanded its debt finance services, becoming active in bond financing and bond trading. The firm continued to serve traditional debt-issuing clients such as private corporations and states, counties, municipalities and school districts while expanding this client base to encompass healthcare facilities, institutions of higher learning and transportation authorities. The firm also earned a growing national reputation for successfully floating bonds for cultural institutions.
In 1995 the firm opened a Zurich
office, followed in 1996 by a San Francisco office and in 1999 by a new office in Hartford. William Blair also expanded its international presence by increasing the size of its Tokyo
and London
offices. In August 2006, William Blair opened an institutional sales and trading office in downtown Boston, as part of an effort to locate in regions with a high concentration of clients. In 2007, the firm has opened a new representative office in Shanghai, China, and another institutional sales office in New York.
William Blair Capital Partners was the investment arm of William Blair & Company, founded in 1982. During the 1980s, WBCP was an active investor in leveraged buyout transactions.
In 2004, the principals of William Blair Capital Partners completed a spinout from William Blair to form Chicago Growth Partners
, a private equity
firm focusing on investments in growth capital
and leveraged buyouts of lower middle market growth companies. The primary motivation for the departure of the Chicago Growth Partners team from William Blair was to gain access to a more diversified base of institutional investor
s that was limited by the group's involvement with the investment bank.
In August 2006, the remaining partners of William Blair Capital Partners suspended efforts to raise William Blair Capital Partners VIII, which had been reportedly targeted at about $250 million. The remaining team left William Blair to found a new private equity firm, Seyen Capital.
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
, equity research, brokerage, asset management and private capital
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
services.
William Blair & Company, L.L.C. was founded in 1935. The firm has approximately 920 employees and is based in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
with offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, San Francisco, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Liechtenstein
Liechtenstein
The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
and Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
.
The firm has broad employee ownership, with 173 principals, a large percentage of the professional staff and over $130 million of equity capital.
History
William Blair & Company opened on January 8, 1935 as Blair, Bonner & Co. The firm was founded by William M. BlairWilliam M. Blair
William McCormick Blair , was an American financier.-Life:William McCormick Blair was born May 2, 1884 in Chicago....
and Francis A. Bonner who had worked together at investment firm Lee, Higginson & Co.
Lee, Higginson & Co.
Lee, Higginson & Co. was a prominent Boston-based investment bank during the 1840s to 1932, home of many members of Boston Brahmin establishment. The bank collapsed in the Swedish match scandal in 1932 while under the leadership of Jerome Davis Greene. Also known for financing the growth of...
, prior to its collapse in 1932-1933.
In its early days it assisted the growth of the Household Finance Corporation
HSBC Finance
HSBC Finance Corporation is a financial services company and a member of the British HSBC Group. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States...
, Continental Casualty and Continental Assurance companies (today CNA Insurance). The firm focused on raising capital, primarily for midwestern growth-oriented companies, through its own originated issues rather than distribute securities for larger Wall Street based investment banks.
In 1941 Bonner left the company, and it was renamed William Blair & Company. The firm was managed by five partners: William Blair, Wallace Flower, Donald Miehls, Lee Ostrander and Daniel Ritter.
In 1946 Blair's sons, William McCormick Blair, Jr.
William McCormick Blair, Jr.
William McCormick Blair, Jr. served as U.S. Ambassador to Denmark from 1961 to 1964 and U.S. Ambassador to the Philippines from 1964 until 1967. A lawyer, he also was a close associate of Adlai Stevenson....
, Edward McCormick Blair and Bowen Blair joined the firm. Blair, Sr. stepped down as managing partner in 1961, and handed the reins over to his son Edward. William M. Blair
William M. Blair
William McCormick Blair , was an American financier.-Life:William McCormick Blair was born May 2, 1884 in Chicago....
remained a senior partner of William Blair & Co. until his death in 1982 (age 97).
Under Edward Blair and Edgar D. Jannotta (managing partner from 1977 to 1994) the firm experienced two difficult periods: the late 1960s, when the inability to process trades resulted in a paper crunch that threatened the industry with shutdown, and the 1970s, when the market value of securities and underwriting activity declined substantially. The firm continued to help finance growth companies completing initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
s for companies such as Molex
Molex
Molex is a leading global supplier of electronic interconnectors. Molex sells over 100,000 products, including everything from electrical and fiber optic interconnect solutions to switches and application tooling....
, Oil-Dri Corporation and Safety-Kleen
Safety-Kleen
Safety-Kleen Systems, Inc. is a privately held company that provides services such as collecting and recycling oil, providing industrial cleaning, and handling industrial waste...
during the 1970s.
In the 1980s, the firm generally avoided many of the hottest areas including underwriting junk bonds, hostile takeovers and merger arbitrage. The company expanded its geographic reach, opening additional offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Liechtenstein
Liechtenstein
The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
to better serve international clients. It enlarged its corporate client base to encompass more companies throughout the United States beyond the midwest and extended its corporate financial services.
During the 1990s, business continued to expand dramatically. Between 1991 and 1996 William Blair & Company lead managed or co-managed 196 equity underwriting transactions representing $13.6 billion in capital. William Blair & Company also expanded its debt finance services, becoming active in bond financing and bond trading. The firm continued to serve traditional debt-issuing clients such as private corporations and states, counties, municipalities and school districts while expanding this client base to encompass healthcare facilities, institutions of higher learning and transportation authorities. The firm also earned a growing national reputation for successfully floating bonds for cultural institutions.
In 1995 the firm opened a Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
office, followed in 1996 by a San Francisco office and in 1999 by a new office in Hartford. William Blair also expanded its international presence by increasing the size of its Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
offices. In August 2006, William Blair opened an institutional sales and trading office in downtown Boston, as part of an effort to locate in regions with a high concentration of clients. In 2007, the firm has opened a new representative office in Shanghai, China, and another institutional sales office in New York.
William Blair Capital Partners
William Blair Capital Partners was the investment arm of William Blair & Company, founded in 1982. During the 1980s, WBCP was an active investor in leveraged buyout transactions.
In 2004, the principals of William Blair Capital Partners completed a spinout from William Blair to form Chicago Growth Partners
Chicago Growth Partners
Chicago Growth Partners is a private equity firm focused on growth capital investments in middle-market companies across a range of industries....
, a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focusing on investments in growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
and leveraged buyouts of lower middle market growth companies. The primary motivation for the departure of the Chicago Growth Partners team from William Blair was to gain access to a more diversified base of institutional investor
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s that was limited by the group's involvement with the investment bank.
In August 2006, the remaining partners of William Blair Capital Partners suspended efforts to raise William Blair Capital Partners VIII, which had been reportedly targeted at about $250 million. The remaining team left William Blair to found a new private equity firm, Seyen Capital.
External links
- William Blair & Company (company profile)