Stifel Financial has found a buyer for the institutional equity business of Sterne Agee Group, the financial services firm it recently agreed to acquire.
Stifel will sell Sterne Agee's equity sales, trading and research functions to CRT Capital.
"We, together with Sterne Agee's management, were committed to finding the right partner, and are very pleased that we have accomplished this goal of keeping approximately 170 professionals together so they can continue their careers as a team," Ronald Kruszewski, Stifel's chairman and chief executive, said in a press release.
As part of last month's agreement to buy Sterne Agee, Stifel announced several pieces of the company that it did not plan to keep, including its
Representatives from Stifel and Sterne Agee on Friday said the future of the investment banking business remains under review.
The companies did not disclose a price for the equities business, though they said in the February release that they believed the businesses had significant value and they had been "approached by a number of suitable partners for the business and its professionals."
In that same release, the companies said they could alternatively consider options, such as a spinoff.
Stifel's deal for
"There is so much overlap and there would be so much dislocation that we felt the best thing to do, the most responsible thing to do, would be to team up with [the Sterne Agee] management team and to work with them about the possibility of finding another buyer or possibly spinning it out," Michaud said. "What I can tell you is that those conversations are continuing."
Sterne Agee's retail brokerage and fixed income group had little overlap and brought strong complements, Michaud said.
Sterne Agee's research department includes some of the banking industry's well-known analysts,
"This transaction represents a transformational opportunity for CRT," Ted Janulis, CRT's chief executive, said in the company's release. "We will be significantly advancing our growth strategy by bringing together Sterne Agee's preeminent equity sales, trading and research business and CRT's well-established franchise in research, equities, credit and investment banking."