Big-Name Game

Big-Name Game

The top 25 investment banks of 1997

By Anna C. Semansky
Red Herring

July 1998

If on first glance this year's top technology investment banks look unfamiliar, it's probably just that their names are longer. The boutique technology banks of last year--Alex. Brown, Robertson Stephens, and Montgomery Securities--picked up long, impressive first names like Bankers Trust, BancAmerica, and NationsBanc. Even investment banking's household names--Salomon Brothers and Morgan Stanley--are now somewhat altered. And at our press time, we learned of a possibility for next year's list: NationsBanc of America Robertson Stephens Montgomery Securities.

Of the 25 banks profiled in this year's Going Public, 10 have undergone or announced a significant merger, acquisition, or restructuring within the last year. These banking mergers have enormous implications for the finance and banking markets on a grand scale; in the world of initial public offerings, however, new branding and new capital don't necessarily lead to market dominance. Robertson Stephens and Montgomery Securities climbed a few slots from last year's list, while others slipped--like Alex. Brown, which fell from No. 3 to No. 10. Despite the merger craze, the prerequisites for successful technology underwriting remain unchanged: the ability to communicate well with technology companies and to spin a deal to institutional buyers.

Going Public's selection of the top investment banking firms of 1997 was based on the banks' total proceeds from lead-managed technology IPOs that raised more than $15 million, according to figures supplied by Securities Data. (Proceeds exclude American depositary receipts and are based on domestic portions of the offerings. For newly merged or acquired companies, rankings reflect premerger proceeds and number of issues for both companies.)

The success of our No. 1 bank, Salomon Smith Barney, can be explained in part by the merger of two of the country's most established banks, both of which were among last year's top performers: Salomon Brothers (7th last year) and Smith Barney (15th last year). But just as significant as the merger is Salomon Smith Barney's penetration in the telecommunications IPO market: more than half of its proceeds, or $514.4 million, came from deals for Qwest Communications, Metromedia Fiber Network, MetroNet Communications, Telegroup (Nasdaq: QWST, MFNX, METNF, TGRP), and other telecom companies.

In fact, telecommunications offered rich rewards for investment bankers across the board. A few of the bigger examples: Merrill Lynch led France Telecom's (NYSE: FTE [ADR]) $836.1 million IPO, while Goldman Sachs joint-managed China Telecom's (NYSE: CHL) and RSL Communications' (Nasdaq: RSLCF) public offerings of $423.6 million and $126.7 million, respectively (domestic portions of the deals only). According to Securities Data, proceeds from telecom IPOs and follow-on offerings in 1997 totaled $40.9 billion, up from $22 billion in 1996.

Yet for some investment banking firms, including Salomon Smith Barney, telecommunications coverage is still conducted outside their core technology groups, and head technology bankers often confess to knowing very little about the telecom industry. But as the old distinctions between types of telecommunications companies disintegrate, so too will the distinctions between telecommunications and technology investment bankers.

Head technology bankers at the top firms expect that telecommunications IPOs, including offerings in the equipment and services, wireless and fiber- optics, and voice and data networking sectors, will continue to be successful this year. Software, semiconductors, and the Internet are other anticipated hot spots. But even with plenty of deals in the pipeline, the competition to lead-manage high-tech offerings is still ruthless, and those banks that have changed their names to secure more cash are not necessarily any better equipped for the fight.

TOP INVESTMENT BANKS

BancAmerica Robertson Stephens

CEO Michael McCaffery

Head tech banker Chip Vetter

San Francisco, California

415/781-9700

Web www.rsco.com

Tech IPOs led 14

Proceeds $528.1M

Market Investment banking and investment management firm specializing in emerging growth companies. In 1997 raised $5.5 billion in technology underwriting, compared with $3.6 billion for the previous year. Lead-managed IPOs for 1997 included Applied Micro Circuits and TSI International Software. Other technology clients include Lotus Development, Pixar Animation Studios, GT Interactive, Ascend Communications, Brøderbund Software, CUC International, Sun Microsystems, and Cypress Semiconductor. In December formed an alliance with Evergreen Capital Markets in Tel Aviv for joint ventures related to emerging companies in Israel. Competes with Morgan Stanley, Dean Witter, Discover; Goldman Sachs; and Hambrecht & Quist. Has offices in San Francisco, New York, Boston, Tokyo, and Palo Alto.

Finance Formed in June 1997 when Bank of America acquired Robertson Stephens, which was founded in 1978. Is now a subsidiary of BankAmerica, which is public (NYSE: BAC). Parent company's revenues for 1997 were $23.6 billion, up from $22.1 billion in the previous year. Net income for the year was $3.2 billion, up 10.3 percent from 1996. Has 1,015 employees. CEO joined Robertson Stephens in 1988 and was previously at Morgan Stanley and Hambrecht & Quist. Announced merger with NationsBank in April; the deal is expected to close in the fourth quarter of this year. Postmerger bank will have a market capitalization of $133 billion.

Barington Capital Group

CEO James Mitarotonda

Head tech banker Marc Cooper

New York, New York

212/974-5700

Web www.barington.com

Tech IPOs led 1

Proceeds $36.8M

Market Investment banking firm specializing in financing and advising small-cap and emerging growth companies. Technology coverage includes networking, telecommunications, health care, media, and entertainment. Hopes to increase coverage of international emerging markets, with initial focus on electronics and manufacturing in China. Lead-managed IPOs for 1997 included Asia Electronics. Other technology clients include Objective Communications, Thinking Tools, and Global Telecommunications Solutions. Competes with Cruttenden Roth and Adams, Harkness & Hill.

Finance Founded in 1992. Privately held. Revenues for 1997 were $30.3 million, up 42.9 percent from the previous year. Has 200 employees. CEO founded the company and was previously a director at Citibank.

BT Alex. Brown

CEO Frank Newman

Head tech bankers Bob Packard, Michael Halloran

Baltimore, Maryland

410/727-1700

Web www.alexbrown.com

Tech IPOs led 7

Proceeds $253.9M

Market Investment banking firm specializing in technology, transportation, health care, energy, and financial services. Technology coverage includes biotechnology, communications services, telecommunications infrastructure, and networking. Lead managed and comanaged a total of 10 technology IPOs in 1997, down from 46 the previous year. Advised on 36 M&A deals valued at $5.7 billion in 1997, up from 30 deals worth $4.1 billion in 1996. Lead-managed IPOs for 1997 included Galileo Technology and Daou Systems. Other technology clients include Lycos, Infoseek, @Home, CDnow, Security Dynamics, and Newbridge Networks. Competes with Morgan Stanley, Dean Witter, Discover; Goldman Sachs; Hambrecht & Quist; and BancAmerica Robertson Stephens. Has technology banking offices in San Francisco, Boston, London, Tokyo, New York, and Baltimore.

Finance Formed in September when Bankers Trust acquired Alex. Brown, which was founded in 1800 and is the oldest investment bank in the United States. Is now a subsidiary of Bankers Trust, which is public (NYSE: BT). Revenues for 1997 were $12.2 billion, up 28 percent from the previous year. Net income for the year was $866 million, up 41 percent from 1996. Investment banking accounted for approximately one-third of overall revenues in fourth quarter 1997. Has 2,600 employees. CEO joined Alex. Brown in 1996 and was previously with the U.S. Treasury.

C.E. Unterberg, Towbin

CEO Thomas Unterberg

Head tech banker David Wachter

New York, New York

212/572-8000

Web www.unterberg.com

Tech IPOs led 3

Proceeds $62.7M

Market Boutique investment firm focusing on technology and financial services; provides public and private financing and M&A advisory services. Technology coverage includes software, networking, and wireless communications industries. Expanding coverage of emerging technology companies in Israel. Has secured niche in lead-managed IPOs of between $15 million and $30 million and comanaged offerings over $30 million. Lead-managed IPOs for 1997 included Radcom, RIT Technologies, and Landmark Systems. Other technology clients include Adaptec, Applied Materials, Compaq Computer, and C-Cube. Competes with Volpe Brown Whelan, BancAmerica Robertson Stephens, Cowen, and Hambrecht & Quist. Has offices in New York and San Francisco.

Finance Founded in 1932. Private partnership. Has 86 employees. CEO was previously chairman and managing director of the now defunct L.F. Rothschild, Unterberg, Towbin.

CIBC Oppenheimer

CEOs Stephen Robert, Nathan Gantcher

Head tech banker Stanley Stern

New York, New York

212/667-7000

Web www.oppenheimer.com

Tech IPOs led 3

Proceeds $114.5M

Market Securities brokerage, investment banking, and asset management firm. Technology coverage includes wireless communications and semiconductors. Seeks to underwrite between 25 and 30 IPOs per year, serving as lead manager on one-third of them. Lead-managed IPOs for 1997 included Vestcom International and Aehr Test Systems. Other technology clients include DSP Communications, 3DLabs, and Digital Microwave. Competes with Volpe Brown Whelan, BancAmerica Robertson Stephens, Cowen, and Hambrecht & Quist. Opened office in Menlo Park in August; also has technology investment offices in New York; London; Tel Aviv, Israel; Singapore; and Taiwan.

Finance Formed in November by the merger of CIBC Wood Gundy and Oppenheimer, which was founded in 1950. Is now a subsidiary of the Canadian Imperial Bank of Commerce, Canada's second-largest bank, which is public (NYSE: BCM). Revenues for fiscal 1997 (ended April) were $780 million, up 15.7 percent from the previous year. Has 3,016 employees.

Cowen

CEO Joseph Cohen

Head tech bankers Richard Char, Jeff Harmon

New York, New York

212/495-6000

Web www.cowen.com

Tech IPOs led 3

Proceeds $87.9M

Market Investment banking firm founded as a sales and trading firm with a research department that it says remains the bank's strength. Technology coverage includes semiconductor, telecommunications, and media and entertainment industries. Completed 45 technology offerings in 1997. Lead-managed IPOs for 1997 included CrossKeys Systems and SCM Microsystems; SCM debuted simultaneously on Nasdaq (SCMM) and Germany's Neuer Markt (SMY) exchanges. In January its Internet research group was acquired by Donaldson, Lufkin & Jenrette. Other technology clients include Microchip, Shiva, Spyglass, Baan, and Applied Materials. Competes with Hambrecht & Quist and BancAmerica Robertson Stephens. Has investment banking offices in London and Munich, Germany.

Finance Founded in 1918. Privately held. Would not disclose revenues. Has 1,650 employees. CEO joined the firm in 1967 and was appointed chairman in 1991. In February agreed to be acquired by Société Générale, an international commercial bank based in France, to form SG Cowen Securities. Deal is expected to close by midyear.

Credit Suisse First Boston

CEO Allen Wheat

Head tech banker Michael Feder

New York, New York

212/325-2000

Web www.csfb.com

Tech IPOs led 1

Proceeds $55.2M

Market Full-service global investment bank specializing in equity capital markets and M&A advisory services. Technology coverage includes semiconductors, enterprise software and hardware, telecommunications, electronic commerce, peripherals, and networking industries. Lead-managed IPOs for 1997 included Digital Lightwave. Other technology clients include IBM, Nokia, Apple Computer, Boeing, and Fairchild Semiconductor. Competes with Morgan Stanley, Dean Witter, Discover; Hambrecht & Quist; and Goldman Sachs. Has regional offices in London and Hong Kong.

Finance Founded in 1932. Parent company is Zurich-based Credit Suisse Group, which is public (OTC: CSGKY [ADR]). Parent company's revenues for 1997 were $7.1 billion, up 30 percent from the previous year. Net income for the year was $1.2 billion. Has 10,000 employees. CEO joined the firm in 1990 and previously managed global capital markets in Asia for Bankers Trust.

Deutsche Morgan Grenfell

CEO Robert Allardice

Head tech banker Frank Quattrone

New York, New York

212/469-5000

Web www.dmg.com

Tech IPOs led 3

Proceeds $121.8M

Market The investment banking arm of the Deutsche Bank Group. Changed name to Deutsche Bank Securities, effective June 1. Subsidiary DMG Technology Group's technology coverage includes networking, software, health care, semiconductors, wireless communications, and telecommunications equipment. Handled 72 technology equity and equity-related offerings worth a total of $19 billion. DMG Tech's lead-managed IPOs for 1997 included Amazon.com, the best-performing Internet IPO of the year, as well as Corsair Communications and Aris. Competes with Morgan Stanley, Dean Witter, Discover and Goldman Sachs. DMG is based in London and has offices in Frankfurt, Germany; New York (North American headquarters); Singapore; Tokyo; and Sydney, Australia. DMG Tech is based in Menlo Park.

Finance Formed in 1995 by the acquisition of Morgan Grenfell by Frankfurt-based Deutsche Bank, which was founded in 1838 and is public (OTC: DTBKY [ADR]). Had assets of $558 billion as of September. Has 9,000 employees. CEO was named to current position in March; he was previously executive vice president and chief operating officer of Deutsche Bank North America.

Donaldson, Lufkin & Jenrette

CEO Joe Roby

Head tech bankers Michael Dorsey, Ian Zwicker

New York, New York

212/892-3000

Web www.dlj.com

Tech IPOs led 4

Proceeds $173.5M

Market Investment banking and securities firm offering stock and bond underwriting, M&A advisory, securities trading and distribution, and research services. Technology coverage includes software and semiconductor industries. In 1997 purchased London-based boutique merger firm Phoenix Group for $81.5 million to obtain its international M&A business. Lead-managed IPOs for 1997 included Star-Tek and Esat Telecom. Other technology clients include Hughes Electronics and APT Satellite. Competes with Merrill Lynch; Morgan Stanley, Dean Witter, Discover; and Goldman Sachs. Has offices in 16 U.S. cities and 12 international cities including Buenos Aires, Argentina; Geneva; Hong Kong; Johannesburg, South Africa; London; Paris; and Tokyo.

Finance Founded in 1959. Public (NYSE: DLJ); the insurance and financial services company Equitable owns approximately 70 percent of the firm. Preliminary revenues for 1997 were $4.6 billion, up 31.4 percent from the previous year. Net income for the year was $408.3 million, up 40.2 percent from 1996. Has 5,900 employees. CEO has been with the firm since 1969 and was named to current position in February.

Goldman Sachs

CEO Jon Corzine

Head tech banker Brad Koenig

New York, New York

212/902-1000

Web www.gs.com

Tech IPOs led 8

Proceeds $518.9M

Hambrecht & Quist

CEO Daniel Case III

Head tech banker Cristina Morgan

San Francisco, California

415/576-3300

Web www.hamquist.com

Tech IPOs led 8

Proceeds $305.9M

Market Boutique investment banking firm. Covers all major technology sectors. Lead-managed IPOs for 1997 included USWeb, Best Software, and Star Telecommunications. Other technology clients include Adobe, Informix, LSI Logic, UUNet Technologies, and Oak Technology. Competes with Morgan Stanley, Dean Witter, Discover; BT Alex. Brown; and BancAmerica Robertson Stephens. Has offices in New York and Boston as well as in Taiwan, the Philippines, Thailand, Singapore, Japan, and Hong Kong.

Finance Founded in 1963. Public (NYSE: HMQ); cofounder and former CEO William Hambrecht owns 12 percent of the company. Revenues for 1997 were $346.2 million, up 11.2 percent from the previous year. Net income for the year was $43.2 million, up 39.3 percent from 1996. In 1997 acquired full ownership of Hambrecht & QuistSaint Dominique, a joint-venture investment banking operation in Europe established a year earlier. Has 823 employees. CEO has been with the company since 1981 and was appointed CEO in 1994, adding the title of chairman when Mr. Hambrecht retired this year.

Josephthal

CEO Dan Purjes

Head tech banker Mark Brefka

New York, New York

212/907-4000

Web www.josephthal.com

Tech IPOs led 2

Proceeds $40.0M

Market Formed as a retail brokerage firm; now offers public and private equity and M&A advisory services to small-cap companies. Technology coverage includes computer telephony, enterprise software, and data security. Lead-managed IPOs for 1997 included NetSpeak and InterVU, which averaged a 62 percent increase in aftermarket performance by year-end. Other technology clients include Brunswick Technologies and InfoCure. Competes with Cowen, Furman Selz, and Cruttenden Roth.

Finance Founded in 1910; began its investment banking business in 1996. Privately held; owned entirely by employees. Has 1,200 employees. CEO was previously at Morgan Stanley.

Lehman Brothers

CEO Richard Fuld Jr.

Head tech banker Mike Wishart

New York, New York

212/526-7000

Web www.lehman.com

Tech IPOs led 4

Proceeds $355.6M

Market Full-service global investment bank specializing in corporate finance, research, trading, and sales. Technology coverage includes semiconductors, wireless communications, software, and information services. In 1997 lead-managed technology equity offerings totaled $1.7 billion; technology M&A deals totaled $23.2 billion. Lead-managed IPOs for 1997 included Hypercom and Hyseq. Other technology clients include MCI Communications, Tandem, SGS Thompson, Fujitsu, Digital Equipment (Compaq), Symbios, and Applied Materials. Competes with Goldman Sachs; Merrill Lynch; and Morgan Stanley, Dean Witter, Discover. Expanding international technology research through its London and Taiwan offices.

Finance Founded in 1850. Public (NYSE: LEH). Revenues for fiscal 1997 (ended November) were $16.8 billion, up 18.4 percent from the previous year. Net income for the year was $647 million, up 55.5 percent from 1996. Has 8,340 employees. CEO has been a director of Lehman Brothers since 1984.

Merrill Lynch

CEO David Komansky

Head tech banker Scott Ryles

New York, New York

212/449-1000

Web www.ml.com

Tech IPOs led 3

Proceeds $295.8M

Market Financial management and advisory company. No. 1 in the United States in proceeds from debt underwriting and in domestic new issues, according to Securities Data. Technology coverage includes data warehousing, Internet software, and electronic commerce. Lead-managed IPOs for 1997 included Iridium World Communications. Other technology clients include America Online, Cisco Systems, Computer Sciences, DST Systems, Hyundai, IBM, LSI Logic, Motorola, PeopleSoft, PSINet, Silicon Graphics, and Viacom. Competes with Goldman Sachs; Morgan Stanley, Dean Witter, Discover; and Lehman Brothers. Technology group is based in Palo Alto.

Finance Founded in 1914; technology group founded in 1995. Public (NYSE: MER). Revenues for 1997 were $31.7 billion, up 26.9 percent from the previous year. Net income for the year was $1.9 billion, up 17.7 percent from 1996. Has 56,000 employees. CEO has been with the company for 30 years and assumed current position in 1996.

Morgan Stanley, Dean Witter, Discover

CEO Phillip Purcell

Head tech bankers Jim Liang, D. Rex Golding

New York, New York

212/761-4000

Web www.deanwitterdiscover.com

Tech IPOs led 8

Proceeds $651.2M

Market Global services firm. Technology coverage includes software, networking, and semiconductors. Lead managed approximately $7 billion in technology financing transactions and advised on more than $27 billion in technology mergers, acquisitions, and restructurings in 1997, including U.S. Robotics' $8.9 billion merger with 3Com. Lead-managed IPOs for 1997 included Rambus, the year's best-performing technology IPO, and J.D. Edwards, the year's biggest technology IPO. Other technology clients include Neomagic, @Home, and MMC Networks. Competes with Goldman Sachs, Deutsche Morgan Grenfell, and Lehman Brothers. Technology group, headquartered in Menlo Park, has offices in New York, Boston, London, Tokyo, and Hong Kong.

Finance Formed in May 1997 by the merger of Dean Witter, Discover and Morgan Stanley, which was founded in 1935. Public (NYSE: MWD). Revenues for fiscal 1997 (ended November) were $27.1 billion, compared with $9 billion for the previous year. Net income for the year was $2.6 billion, compared with $951 million in 1996. Has 49,000 employees. CEO was chairman and CEO of Dean Witter, Discover from 1986 until its merger with Morgan Stanley.

NationsBanc Montgomery Securities

CEO Thomas Weisel

Head tech banker J. Sanford Miller

San Francisco, California

415/627-2000

Web www.nationsbancmontgomery.com

Tech IPOs led 15

Proceeds $496.0M

Market Full-service investment bank and brokerage firm specializing in institutional brokerage, asset management, and investment banking. Covers 200 technology companies in most sectors. Lead-managed IPOs for 1997 included Concord Communications and 8x8. Other technology clients include Siebel Systems, Aspen Technology, RF Micro Devices, and 3Dfx. Competes with Hambrecht & Quist and BancAmerica Robertson Stephens. Has offices in Charlotte, North Carolina; Boston; New York; and Dallas.

Finance Formed in October by NationsBank's acquisition of Montgomery Securities, which was founded in 1969. Is now a subsidiary of NationsBank, which is public (NYSE: NB). Parent company's revenues for 1997 were $24.5 billion, up 39.8 percent from the previous year. Net income for the year was $3.1 billion, up 29.6 percent from 1996. NationsBanc Montgomery Securities has approximately $800 million in capital. Has 1,898 employees. CEO founded the company. Announced merger with BankAmerica in April; the deal is expected to close in the fourth quarter of this year. Postmerger bank will have a market capitalization of $133 billion.

PaineWebber

CEO Donald Marron

Head tech banker R. David Dicioccio

New York, New York

212/713-2000

Web www.painewebber.com

Tech IPOs led 2

Proceeds $90.8M

Market Full-service investment banking and brokerage firm. Closed only technology office, in San Francisco, in February. Will continue to serve existing technology customers. Lead-managed IPOs for 1997 included N2K and GlobeComm Systems. Technology clients include Gateway 2000, Lattice Semiconductor, Geoworks, Nexgen, and KLA Instruments.

Finance Founded in 1879. Public (NYSE: PWJ); General Electric owns 23 percent of the company. Revenues for 1997 were $6.7 billion, up 16.7 percent from the previous year. Net income for the year was $415.4 million, up 14 percent from 1996. Has 15,900 employees. CEO cofounded and was chairman of Data Resources as well as a director of the New York Stock Exchange.

Piper Jaffray

CEO Addison Piper

Head tech banker John Jacobs

Minneapolis, Minnesota

612/342-6000

Web www.piperjaffray.com

Tech IPOs led 1

Proceeds $44.8M

Market Full-service investment banking and securities brokerage. Technology coverage includes computer graphics, imaging, and enterprise software; semiconductors; and telecommunications. In March expanded telecommunications equipment research to include network infrastructure. In 1997 lead managed 9 equity offerings totaling $362 million and comanaged 30 offerings totaling $3.1 billion. Lead-managed IPOs for 1997 included Advanced Learning. Other technology clients include Brio Technology and Interplay Entertainment. Competes with BT Alex. Brown, Cowen, and Hambrecht & Quist.

Finance Subsidiary of Piper Jaffray Companies, a financial services company that was founded in 1895 and is public (NYSE: PJC); employees own approximately 60 percent of the company. Parent company's revenues for fiscal 1997 (ended September) were $602 million, up 8.7 percent from the previous year. Net income for the year was $1 million, a decrease of 86.3 percent from 1996. Has 3,200 employees. CEO has been with the company for 27 years. In December U.S. Bancorp announced plans to acquire parent company, which would become a subsidiary known as U.S. Bancorp Piper Jaffray. The deal would create the 11th-largest retail brokerage in the nation, managing $68 billion in assets.

Raymond James & Associates

CEO Thomas James

Head tech bankers John Hill, Charlie Uhrig

St. Petersburg, Florida

813/573-3800

Web www.rjf.com

Tech IPOs led 2

Proceeds $106.3M

Market The largest independent investment bank in the southeastern United States and a full-service firm. Technology coverage includes semiconductors, the Internet, telecommunications services and equipment, and software. In 1997 completed eight technology equity offerings totaling $973 million. Lead-managed IPOs for 1997 included Inspire Solutions. Other technology clients include Faro Technologies. Competes with NationsBanc Montgomery Securities, BancAmerica Robertson Stephens, and Hambrecht & Quist. Has 1,103 offices worldwide.

Finance Subsidiary of Raymond James Financial, which was founded in 1962 and is public (NYSE: RJF); CEO owns about one-third of the company. Information technology group founded in 1992. Parent company's revenues for fiscal 1997 (ended September) were $927.6 million, up 28.5 percent from the previous year. Net income for the year was $261.8 million, up 49.8 percent from 1996. Has 3,244 employees. CEO has been with the company since 1966.

Robert W. Baird

CEO G. Frederick Kasten Jr.

Head tech bankers Terrance Maxwell, Nick Zarcone, Paul Carbone

Milwaukee, Wisconsin

414/765-3500

Web www.rwbaird.com

Tech IPOs led 1

Proceeds $49.6M

Market Full-service investment banking firm specializing in research, public equity markets, and M&A services. Technology coverage includes telecommunications equipment and information services. Lead-managed IPOs for 1997 included Metro Information Services. Other technology clients include Diamond Technology, Hall Kinion, and Coherent Communications. Competes with Cowen and Volpe Brown Whelan. Opened an institutional equity office in London in September.

Finance Founded in 1919. Privately held. Member of the Northwestern Mutual Life Group, which has been a majority investor since 1982. Revenues for 1997 were $430 million, up 21 percent from the previous year. Has 1,700 employees. CEO joined firm in 1963 and has been president and CEO since 1979.

Salomon Smith Barney

CEOs James Dimon, Deryck Maughan

Head tech banker Barry Newman

New York, New York

212/816-6000

Web www.smithbarney.com

Tech IPOs led 12

Proceeds $902.8M

Market Full-service securities firm specializing in retail distribution sales, fixed income management, municipal finance, and asset management. No. 1 in proceeds from lead-managed technology IPOs for 1997. Technology coverage includes telecommunications, semiconductors, storage, and networking. Lead-managed IPOs for 1997 included Metromedia Fiber Network, Qwest Communications, MetroNet Communications, and Telegroup. Other technology clients include Micromuse, IBM, Comverse, and Northern Telecom. Competes with Morgan Stanley, Dean Witter, Discover; Lehman Brothers; PaineWebber; BT Alex. Brown; and BancAmerica Robertson Stephens. Has more than 450 offices throughout the United States and 45 offices in 26 foreign countries.

Finance Formed by the merger of Salomon Brothers and the Travelers Group's Smith Barney in December; Salomon Brothers was formed in 1910. A subsidiary of the Travelers Group, which is public (NYSE: TRV). Investment banking revenues for 1997 were $2.1 billion, up 5 percent from the previous year. Has 68,900 employees. James Dimon was appointed CEO of Smith Barney in 1996. Deryck Maughan was previously CEO of Salomon Brothers. In April parent company announced plans to merge with Citicorp.

SBC Warburg Dillon Read

CEO Hans deGier

Head tech banker Matthew Dodds

New York, New York

212/906-7000

Web www.sbcwarburg.com

Tech IPOs led 2

Proceeds $314.9M

Market Investment bank specializing in corporate finance, particularly M&A, high-yield bonds, stocks, and private placements. Technology coverage includes telecommunications equipment and biotechnology. Lead-managed technology IPOs for 1997 were General Cable and Autocyte. Competes with Lehman Brothers and Hambrecht & Quist. Has offices in approximately 40 countries around the world.

Finance Formed in September when European investment bank SBC Warburg acquired investment bank Dillon Read. A division of Basel-based Swiss Bank, which was founded in 1832 and is public (OTC: SWBZY [ADR]). Net income for 1997 was SFr711 million ($474 million), down 15 percent from the previous year. (Swiss Bank's 1997 revenues were SFr4.6 billion, up 17 percent from 1996.) Has 9,500 employees. CEO has been an executive director of the bank since 1980. In December announced the merger of UBS and Swiss Bank, which was scheduled to be completed in June. The merged bank will be named UBS and operate its investment banking unit under the name Warburg Dillon Read. The combined company will become the world's second-largest bank, with a $60 billion market capitalization.

Stephens

CEO Warren Stephens

Head tech banker Peter DeVos

Little Rock, Arkansas

501/377-2000

Web www.stephens.com

Tech IPOs led 1

Proceeds $70.0M

Market Investment banking and brokerage firm specializing in corporate offerings, debt management, stock and bond brokerage, and M&A. Technology coverage includes telecommunications equipment and data warehousing. Majority of clients have market caps under $2 billion. Lead-managed IPOs for 1997 included Power-One. Technology clients include Alltel, Acxom, and Century Telephone. Competes with Raymond James and Hambrecht & Quist. Has offices throughout the southern United States and in Boston.

Finance Founded in 1933. Subsidiary of Stephens Holding Company, which is privately held. Does not disclose revenues. Has a $152.2 million book value and assets of $578.6 million. Has 608 employees. CEO succeeded his father in 1986.

UBS Securities

President Richard Capone

Head tech banker Harry Mosley

New York, New York

212/821-4000

Web www.ubs.com

Tech IPOs led 4

Proceeds $141.2M

Market Full-service investment bank with focus on global markets. Specializes in technology research, M&A advisory, and international equity markets. Technology coverage includes communications, semiconductors, wireless communications, software, and electronics. Lead-managed IPOs for 1997 included Peregrine and New Era of Networks. Other technology clients include Baan, Intuit, Scopus, 3Dlabs, and Samsung. Competes with Credit Suisse and Deutsche Bank. Technology group is based in San Francisco.

Finance Subsidiary of Union Bank of Switzerland, which was founded in 1862 and is public (OTC: UBSUY); technology group founded in 1995. Subsidiary's revenues for 1996 were $437.3 billion, up 13 percent from the previous year. Has 27,611 employees. CEO joined UBS in 1978 and became president of UBS Securities in 1996. In December announced a merger with Swiss Bank, which was scheduled to be completed in June. The merged bank is to retain the name UBS and operate its investment banking unit under the name Warburg Dillon Read. The combined company will become the world's second-largest bank, with a $60 billion market capitalization. In March five technology bankers and nine technology analysts defected to Donaldson, Lufkin & Jenrette and other banks because of the pending merger.

Volpe Brown Whelan

CEO Tom Volpe

Head tech banker Adam Cioth

San Francisco, California

415/956-8120

Web www.vwco.com

Tech IPOs led 2

Proceeds $66.0M

Market Boutique asset management firm and investment bank focusing on health care and technology. Technology coverage includes communications, enterprise software, Internet technologies, semiconductors, and electronic commerce. Lead-managed IPOs for 1997 included Cognicase and HTE. Other technology clients include Avid Technology, Discreet Logic, Netcom, and Premenos. Competes with Hambrecht & Quist and BancAmerica Robertson Stephens. Has offices in San Francisco and Boston.

Finance Founded in 1987. Limited partnership. Does not disclose revenues. Has approximately $50 million in equity capital. Has 180 employees. CEO cofounded the company and was previously CEO of Hambrecht & Quist.