Client assets grew to $145 billion in 2014
MILWAUKEE, April 15, 2015 – Employee-owned Baird announced today that it posted record net revenues of $1.2 billion1 in 2014, a 12 percent increase over 2013. Operating income totaled a record $135 million, up 15 percent from a year ago, and the firm’s 2014 return on book value was 15.5 percent, outpacing most of the industry. Baird’s assets in client accounts grew to $145 billion, a 45 percent increase over the past two years. The 2014 results, which are available in the 2014 Baird Annual Report, mark the firm’s fifth consecutive year of record revenues.
“Each of our businesses continued to excel in providing service and solutions to our clients, and several achieved records in key metrics and revenue,” said Paul E. Purcell, Baird Chairman & CEO. “Our results once again prove the value of our employee-owned model and our five complementary businesses that help diversify revenue and contribution.”
Baird’s balanced approach has allowed the firm to produce 140 consecutive quarters of operating profitability. Employment at Baird has increased 29 percent over the past five years while the rest of the financial services industry grew by less than 4 percent during the same time period.
In 2014, Baird expanded in numerous areas including:
- Private Wealth Management, with the acquisition of Seattle-based McAdams Wright Ragen – the single-largest investment in Baird’s history-- and additional recruiting efforts, added more than 100 experienced Financial Advisors and Branch Managers. The nationwide wealth management network now includes over 800 Financial Advisors serving clients from more than 80 offices.
- Asset Management’s total fixed income and equity assets under management grew more than 40 percent to $31.9 billion at year-end. The group also expanded its equity services through a minority investment in Greenhouse Funds, an independent asset manager.
- Global Investment Banking completed a record 222 advisory and financing transactions around the world with a total value of more than $60 billion, and experienced a 24 percent revenue increase over 2013.
- Fixed Income Capital Markets was the nation’s leading underwriter of municipal bonds for the sixth year in a row, outpacing the nearest competitor’s number of transactions by more than 40 percent, according to IPREO MuniAnalytics.
- Baird Capital, the firm’s private equity business that has raised and managed more than $3 billion since inception, continued to build its global platform and raised a new venture capital fund of $185 million. The group also realized total proceeds of $341 million in 2014, primarily from the exit of 13 investments.
“Over the past 95 years, Baird has built a very durable business with a remarkable group of associate-owners who are motivated daily to serve our clients,” said Steve Booth, Baird President & COO. “With that strong foundation, we are exceptionally well positioned to capture opportunities that will allow Baird to continue to grow in a thoughtful way for our clients.”
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 3,100 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $145billion in client assets. Committed to being a great place to work, Baird ranked No. 5 on FORTUNE’s 100 Best Companies to Work For® in 2015 – its 12th consecutive year on the list. 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 www.rwbaird.com.
1Financial results do not reflect the consolidation of certain private equity partnerships.