Robertson Stephens
Encyclopedia
Robertson Stephens was a San Francisco-based boutique investment bank that focused on primarily on technology companies. The firm was closed by its parent company, FleetBoston in July 2002 as a result of the collapse of the technology sector and the end of the dot-com bubble
.
Robertson Stephens was among the most active investment banks in the technology sector at the height of the internet boom, underwriting 74 IPOs with a total value of $5.5 billion between 1999 and 2000. Robertson was the lead underwriter of some of the most prominent firms of the 1990s stock boom, including Switchboard, Mapquest
, E-Trade and Vericity, as well as retailer Bebe
.
Robertson had approximately 950 employees at the time it was shuttered by FleetBoston.
and Thomas Weisel Partners
, joined the firm, which was renamed Robertson, Colman, Siebel & Weisel.
In 1978, Thom Weisel
, the junior partner pulled off what was described later as a "mutiny" of the firm. Weisel became chief executive of the firm and prompted the departure of Robertson and Colman. Weisel changed the name of the original firm to Montgomery Securities
.
Robertson left the firm in October 1978 and founded Robertson, Colman, Stephens & Woodman along with partners Robert Colman and Dean Woodman and many of the firm's leading bankers. The name of the firm was shorted to Robertson Stephens & Company in 1989. Robertson Stephens and Montgomery Securities would remain fierce rivals for two decades.
In 1998, BankAmerica agreed to a merger with NationsBank
, which was by this time the parent company of rival technology investment banking boutique Montgomery Securities
. The significant internal tensions between Montgomery and Robertson Stephens led to the sale of Robertson Stephens to BankBoston
in 1998 for $800 million. Shortly after the sale of the firm to BankBoston, Sandy Robertson left the firm and was succeeded by COO Bob Emery.
Robertson Stephens would change hands again the following year when Fleet Financial merged with BankBoston
in 1999 to form FleetBoston Financial
.
, and its leading technology banker Frank Quattrone
, which swept in and grabbed the most lucrative IPOs, Robertson Stephens was among the most active investment banks in the technology sector at the height of the internet boom. Robertson Stephens completed the underwriting 74 IPOs with a total value of $5.5 billion between 1999 and 2000.
However, by 2001, Robertson was suffering from the downturn following the collapse of the dot-com bubble
due to a lack of interest in new technology IPOs and a lack of companies well suited for IPO. Robertson Stephens lost $61 million of net income
for Fleet during 2001 for its parent bank, FleetBoston Financial
, compared with a $216 million profit in 2000. Fleet put Robertson Stephens up for sale in April 2002 and struggled to come to terms with a buyer. Bear Stearns
and Jefferies & Co.
were among the most active in discussions. Senior executives of Robertson Stephens also looked at a potential management buyout.
Ultimately, Fleet failed to find a buyer and made the determination to pursue a liquidation of Robertson Stephens in July 2002. Robertson Stephens, was among the "Four Horsemen" firms in devoted to technology deals in Silicon Valley
along with Hambrecht & Quist
, Montgomery Securities
and Alex. Brown. At the time of its closing in 2002, Robertson Stephens was the only one of the Four Horsemen remaining as an independent, operating firm in the aftermath of the bursting of the dot-com bubble
.
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
.
Robertson Stephens was among the most active investment banks in the technology sector at the height of the internet boom, underwriting 74 IPOs with a total value of $5.5 billion between 1999 and 2000. Robertson was the lead underwriter of some of the most prominent firms of the 1990s stock boom, including Switchboard, Mapquest
MapQuest
MapQuest is an American free online web mapping service owned by AOL. The company was founded in 1967 as Cartographic Services, a division of R.R. Donnelley & Sons in Chicago, Illinois, United States. It moved to Lancaster, Pennsylvania in 1969. When it became an independent company in 1994, it was...
, E-Trade and Vericity, as well as retailer Bebe
Bebe stores
bebe stores are an American clothing retailer founded in 1976. The name was inspired by, and is pronounced as in, the phrase "to be or not to be" from the play Hamlet. Manny Mashouf, who emigrated to the United States in the early 1970s, opened the first bebe store in San Francisco during a time...
.
Robertson had approximately 950 employees at the time it was shuttered by FleetBoston.
History
The firm's earliest predecessor, Robertson, Colman & Siebel was founded in 1969 by Sandy Robertson, Robert Colman and Ken Siebel. In 1971, Thomas Weisel, who would later found Montgomery SecuritiesMontgomery Securities
Montgomery Securities was a west-coast investment bank based in San Francisco, California, that specialized in high technology and health care sectors. The firm was founded in 1978 by Thom Weisel....
and Thomas Weisel Partners
Thomas Weisel Partners
Thomas Weisel Partners Group, Inc. , also known as TWP or Weisel, is a U.S. growth focused investment banking firm based in San Francisco, California....
, joined the firm, which was renamed Robertson, Colman, Siebel & Weisel.
In 1978, Thom Weisel
Thom Weisel
Thomas "Thom" Weisel is an American banker and businessman, one of the pioneers in the development of the high tech industry in Silicon Valley. Weisel is the founder of Montgomery Securities and later Thomas Weisel Partners....
, the junior partner pulled off what was described later as a "mutiny" of the firm. Weisel became chief executive of the firm and prompted the departure of Robertson and Colman. Weisel changed the name of the original firm to Montgomery Securities
Montgomery Securities
Montgomery Securities was a west-coast investment bank based in San Francisco, California, that specialized in high technology and health care sectors. The firm was founded in 1978 by Thom Weisel....
.
Robertson left the firm in October 1978 and founded Robertson, Colman, Stephens & Woodman along with partners Robert Colman and Dean Woodman and many of the firm's leading bankers. The name of the firm was shorted to Robertson Stephens & Company in 1989. Robertson Stephens and Montgomery Securities would remain fierce rivals for two decades.
Changing ownership (1997-1999)
Robertston Stephens was founded as an independent partnership and remained independent until the late 1990s, when its ownership changed hands several times. In June 1997, the partners sold Robertson Stephens to BankAmerica for $540 million. The combined firm would operate as BancAmerica Robertson Stephens for approximately 11 months.In 1998, BankAmerica agreed to a merger with NationsBank
NationsBank
NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. In 1998, it acquired BankAmerica to become Bank of America.-Corporate history:...
, which was by this time the parent company of rival technology investment banking boutique Montgomery Securities
Montgomery Securities
Montgomery Securities was a west-coast investment bank based in San Francisco, California, that specialized in high technology and health care sectors. The firm was founded in 1978 by Thom Weisel....
. The significant internal tensions between Montgomery and Robertson Stephens led to the sale of Robertson Stephens to BankBoston
BankBoston
BankBoston was a bank based in Boston, Massachusetts, which was created by the 1996 merger of Bank of Boston and BayBank. Bank of Boston had a venerable history dating back to 1784, but the merged BankBoston was short-lived, being acquired by Fleet Bank in 1999...
in 1998 for $800 million. Shortly after the sale of the firm to BankBoston, Sandy Robertson left the firm and was succeeded by COO Bob Emery.
Robertson Stephens would change hands again the following year when Fleet Financial merged with BankBoston
BankBoston
BankBoston was a bank based in Boston, Massachusetts, which was created by the 1996 merger of Bank of Boston and BayBank. Bank of Boston had a venerable history dating back to 1784, but the merged BankBoston was short-lived, being acquired by Fleet Bank in 1999...
in 1999 to form FleetBoston Financial
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts–based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo.-History:...
.
Closing Robertson Stephens
Although its business was squeezed by major Wall Street banks such as Credit Suisse First BostonCredit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
, and its leading technology banker Frank Quattrone
Frank Quattrone
Frank Quattrone is an American technology-focused investment banker who started technology sector franchises at Morgan Stanley, Deutsche Bank, and Credit Suisse First Boston. He helped bring dozens of technology companies public during the 1990s tech boom, including Netscape, Cisco, and Amazon.com...
, which swept in and grabbed the most lucrative IPOs, Robertson Stephens was among the most active investment banks in the technology sector at the height of the internet boom. Robertson Stephens completed the underwriting 74 IPOs with a total value of $5.5 billion between 1999 and 2000.
However, by 2001, Robertson was suffering from the downturn following the collapse of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
due to a lack of interest in new technology IPOs and a lack of companies well suited for IPO. Robertson Stephens lost $61 million of net income
Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
for Fleet during 2001 for its parent bank, FleetBoston Financial
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts–based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo.-History:...
, compared with a $216 million profit in 2000. Fleet put Robertson Stephens up for sale in April 2002 and struggled to come to terms with a buyer. Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
and Jefferies & Co.
Jefferies & Co.
Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. is a global investment bank and institutional securities firm...
were among the most active in discussions. Senior executives of Robertson Stephens also looked at a potential management buyout.
Ultimately, Fleet failed to find a buyer and made the determination to pursue a liquidation of Robertson Stephens in July 2002. Robertson Stephens, was among the "Four Horsemen" firms in devoted to technology deals in Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
along with Hambrecht & Quist
Hambrecht & Quist
Hambrecht & Quist was an investment bank based in San Francisco, California noted for its focus on the technology and internet sectors. H&Q was founded by William Hambrecht and George Quist in California, 1968....
, Montgomery Securities
Montgomery Securities
Montgomery Securities was a west-coast investment bank based in San Francisco, California, that specialized in high technology and health care sectors. The firm was founded in 1978 by Thom Weisel....
and Alex. Brown. At the time of its closing in 2002, Robertson Stephens was the only one of the Four Horsemen remaining as an independent, operating firm in the aftermath of the bursting of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
.