Client assets grew to $171 billion in 2016
MILWAUKEE, April 19, 2017 – Employee-owned Baird announced today that it posted record net revenues of $1.4 billion1 in 2016, an 8 percent increase over 2015, despite slow economic growth, market volatility and geopolitical tumult. Operating income totaled a record $155 million and the firm’s 2016 return on book value, including a cash dividend paid to shareholders, was 12.5 percent.Baird’s assets in client accounts grew to $171 billion, a 96 percent increase over the past five years. The 2016 results, which are available in the 2016 Baird Annual Report, mark the firm’s seventh consecutive year of record revenues.
“Being privately held and employee owned means we are incredibly focused on our clients’ success and have the flexibility to continuously invest in our capabilities to best serve our clients’ needs,” said Steve Booth, Baird President & CEO. “Our independent business model and complementary businesses help diversify revenue across various market conditions and provide a very strong foundation for our continued success.”
Baird’s employee-owned model and balanced approach have enabled the firm to produce 148 consecutive quarters of operating profitability. Employment at Baird has increased nearly 24 percent over the past five years while the rest of the financial services industry grew by approximately 8 percent2 during the same time period.
Notable highlights from Baird’s 2016 annual report include:
- Private Wealth Management posted strong results, and its assets under management grew to $117 billion, a record for the business.
- Asset Management continued to grow its businesses and assets under management rose to $51 billion, a 29 percent increase over 2015.
- Equity Capital Market’s revenues exceeded $400 million for the first time, largely driven by record M&A activity in Baird’s Global Investment Banking business.
- Baird Capital, the firm’s private equity business, invested $72 million in six new and 20 follow-on investments. The business also successfully exited ten investments and realized approximately $256 million.
- Fixed Income Capital Markets ranked as the No. 1 municipal underwriter in the United States for the eighth consecutive year, based on number of issues, according to Ipreo MuniAnalytics. The business’ revenue also grew by 16%.
- FORTUNE magazine’s list of the 100 Best Companies to Work For - In early 2017, Baird was ranked No. 4 on this prestigious list of companies considered to be great employers. Baird has ranked among the Top 10 for four straight years, and has been recognized on the list for 14 consecutive years.
“For more than 95 years, Baird has focused on providing exceptional financial advice and creating strong partnerships with our clients, our associates and our communities,” said Paul Purcell, Chairman of Baird. “Our commitment to being a great place to work and our employee-ownership help us attract and retain the best talent, furthering our clients’ and Baird’s success.”
To learn more about Baird’s financial performance and other 2016 highlights, please see the Baird 2016 Annual Report.
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 3,400 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $171billion in client assets. Committed to being a great place to work, Baird ranked No. 4 on FORTUNE’s 100 Best Companies to Work For in 2017 – its 14th consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s Web site at rwbaird.com.
1 Financial results do not reflect the consolidation of certain private equity partnerships.
2 Source: SIFMA Securities Industry Employment Reports.