Stifel Financial Corp. has announced the launch of a venture banking and lending business to provide debt capital financing and commercial banking solutions to growth companies and their investors.
The business will target early stage startups through mature growth companies, with a focus on the technology, healthcare, and life sciences industries. Stifel offers senior secured loans up to $40 million for working capital and growth capital needs.
“This represents yet another significant step in the build-out of our banking services, which benefit from the capacity and diversification of our $17 billion bank balance sheet,” said Chris Reichert, CEO of Stifel Bank & Trust, in a press release. “We view Venture Banking and Lending as an attractive loan and deposit growth vehicle, and we’re excited to be in the market with these new capabilities.”
“Venture clients have sophisticated needs that often require access to a variety of specialty teams, especially as they grow,” added Thom Weisel, co-chairman of the Board of Stifel. “We see this as an incredibly strategic business, as it connects our lending and banking capabilities to the formidable technology, healthcare, and financial sponsor Investment Banking businesses throughout Stifel.”
In addition, a group of industry leaders have come on board, led by Managing Director Brad Ellis and Director Nathaniel Stone, who have joined Stifel as co-founders of the Venture Banking and Lending Group. Other members of the leadership team include Managing Director Philip Gager, who leads the Healthcare and Life Sciences team out of Boston; Director Alan Faulkner, who is in charge of coverage of the Southeastern United States; Director Mike Breaux, who leads the Fund Banking effort; and Senior Vice President Jim D’Elisa, who heads the treasury and cash management needs of commercial customers.
“Competitors can’t match the breadth and sophistication of the Stifel offering to venture clients,” said Ellis. “Having the ability to tap into the broader Stifel network of capabilities and institutional services, like investment banking and fund placement, is critical and a true differentiator. I am excited to launch this effort at Stifel, which embraces the entrepreneurial spirit, continuous innovation, and responsible financial management.”