ANNUAL REPORT 2020Investment Banking

The market in 2020 was characterized by unprecedented levels of volatility and uncertainty driven by the global pandemic, the U.S. presidential election, and ongoing geopolitical risks. Despite those difficult circumstances, global industry-wide activity reached record levels, with fee pools up 18 percent compared to 2019, driven by strengths in the equity and debt capital markets. 

Oppenheimer’s Investment Banking franchise met the challenges presented by this unpredictable operating environment with strength and resiliency. The division delivered its strongest full year revenue performance on record. Gross revenues reached $136.2 million, an increase of more than 70 percent, also marking the fourth consecutive year of revenue growth. The Healthcare and Technology teams led division activity, and the Financial Institutions group also had a strong year. While our advisory practice experienced a slowdown in deal announcements early on in the pandemic, activity picked up in the second half of the year with completed M&A transactions totaling $5 billion in value. Our Equity Capital Markets revenue more than doubled, and we raised approximately $40 billion of equity and equity-linked capital for clients through more than 120 offerings, with notable increases in SPAC and convertible activity. In Debt Capital Markets, we participated in twice the number of transactions in 2020 as compared to 2019, raising $1.7 billion in total proceeds. 

We are optimistic about our performance in the year ahead. Although the pandemic continues to create uncertainty, we believe that continued accommodative monetary policies, coupled with anticipated increases in fiscal stimulus and infrastructure spending will accelerate U.S. economic growth in 2021. Our pipelines remain healthy, and we are encouraged by the robust level of ongoing dialogue we are having with clients across sectors. We continue to execute on our core competencies while expanding with targeted strategies, and believe that this will position us for continued growth and success.

Traditionally, the Investment Banking division’s collaboration with institutional and wealth businesses has been a strong differentiating factor for our business that has created opportunities for both our clients and our firm. More recently, increased cross-border collaboration between the U.S. and Europe has further enhanced our platform, leading to a wider global client footprint. The firm’s strong reputation for its total client experience should continue to drive success in the future.

Our commitment to developing existing talent and opportunistically investing in new senior banking personnel remains a top priority. We increased our workforce by 15 percent in 2020 and expect 2021 to be another year of controlled, targeted growth. When faced with the unprecedented crisis this year, our bankers rose to the challenge, displaying exceptional resiliency and competency in successfully helping our clients navigate these extraordinary times. The firm’s commitment to its people will continue to enhance a platform recognized for delivering experienced, tailored advice to clients.

Oppenheimer is relentlessly focused on its core competencies and growing its platform through commitments to human capital and the total client experience. We are confident that a continued focus on execution along with a targeted strategic approach to growth will lead to success in 2021 and the years ahead.