Our capital markets division offers corporations and institutional investors around the world an integrated platform for equity research, sales and trading, advisory and investment banking services that is built on extensive operations in Canada, the US, the UK and Europe, China, Singapore, Australia and Barbados.
Canaccord Genuity provides investment banking, advisory, sales and trading, research and fixed income services to corporate and institutional clients in 11 countries worldwide. We pride ourselves on our ability to provide clients with a genuinely global perspective on opportunities to grow the value of their businesses and investments.
During 2014, we continued to improve global coordination of our investment banking, equity research, and sales and trading capabilities. We also continued to add to the quality and depth of our leadership teams in each of our regions and divisions, and appointed global management for each of our disciplines. In doing so, we have created a platform that encourages cross-border collaboration, and creates stronger outcomes for our clients.
Canaccord genuity REVENUE 2010–2014
(C$ millions, fiscal years)
Canaccord Genuity Revenue 2010-2014
(C$ millions, fiscal years)
| Year | Canaccord genuity Revenue 20102014 (C$ millions) |
| 2010 | 363.6 |
| 2011 | 538.6 |
| 2012 | 373.5 |
| 2013 | 541.0 |
| 2014 | 615.8 |
$616
million in global revenue
Fiscal 2013 Revenue by Activity
Fiscal 2013 Revenue by Activity
(%)
| Activity | Fiscal 2013 Revenue by Activity (%) |
| Advisory |
33 |
| Commissions |
30 |
| Investment Banking |
23 |
| Principal Trading | 12 |
| Interest and Other | 2 |
Fiscal 2014 Revenue by Activity
Fiscal 2014 Revenue by Activity
(%)
| Activity | Fiscal 2013 Revenue by Activity (%) |
| Advisory |
23 |
| Commissions |
27 |
| Investment Banking |
33 |
| Principal Trading | 15 |
| Interest and Other | 2 |
In all of our regions, we have diversified our coverage and adopted a lead bookrunner mentality, which has led to a 69% increase in our global underwriting revenue for the fiscal year. By establishing consistent advisory and equity transaction leadership across our global platform, we have increased our market share and continue to improve our relevance to clients.
We will continue to support the growth of our business by adding key personnel and verticals to serve our growing client base. Our focus will be on continuing to establish leadership in our global capital markets business. Additionally, in the year ahead, we expect to develop robust sales, trading and research presence in the strategic Singapore market. Our strong pipeline, in combination with our optimistic outlook for the global economy over the coming years, gives us confidence in continued year-over-year improvements across our global capital markets business.
$36.5
BILLION
Canaccord Genuity raised $36.5 billion during fiscal 2014
345
transactions
Canaccord Genuity participated in 345 transactions(1)
(1) Transactions over $1.5 million.
With record revenue from our UK and Europe, US and Asia-Pacific regions, our capital markets division was a significant driver of our performance during fiscal 2014. Our operating results demonstrate the strength of our global business and the success of our efforts to diversify our revenue streams.
Canaccord Genuity delivers exceptional value to clients through our unique understanding of global issues and opportunities and our diverse institutional distribution capability. Our integrated full-service platform and highly ranked global research team allow for extensive access to investors around the world. With experienced professionals located in 11 countries worldwide and deep institutional relationships, we take pride in having the broadest account coverage of any mid-market bank.
Our unparalleled service offering, in addition to our growing cross-border capabilities, has become a key differentiator of our business. As we continue to focus on integrating our global capital markets business, we expect the momentum built last year to continue through fiscal 2015. That is, Canaccord Genuity should continue to enjoy strong contributions from its various geographical platforms.
Canaccord Genuity’s global team of investment banking, equity research, and sales and trading professionals are dedicated to providing clients with actionable ideas and opportunities in 18 key sectors of the global economy.
Aerospace & Defence
Agriculture
CleanTech & Sustainability
Consumer & Retail
Energy
Financials
Healthcare & Life Sciences
Infrastructure
Leisure
Media & Telecommunications
Metals & Mining
Paper & Forestry Products
Real Estate & Hospitality
Support Services
Technology
Transportation & Industrials
Investment Companies
Private Equity
We have talented professionals forming a unified multilingual team operating from our offices in Canada, the US, the UK, Ireland, France, Germany, China and Australia.
Our worldwide M&A capabilities link our clients to opportunities on a global scale.
| Sector | As a % of investment banking transactions | As a % of investment banking revenue |
| Technology | 13.8% | 26.4% |
| Healthcare & Life Sciences | 12.9% | 15.4% |
| Energy | 13.5% | 11.9% |
| Metals & Mining | 9.0% | 10.5% |
| Real Estate & Hospitality | 9.6% | 7.8% |
| Investment Companies | 0.8% | 4.9% |
| Financials | 5.9% | 4.6% |
| Consumer & Retail | 2.8% | 4.5% |
| CleanTech & Sustainability | 2.2% | 3.9% |
| Media & Telecommunications | 0.6% | 2.6% |
| Structured Products | 21.9% | 0.7% |
| Other | 7.0% | 6.8% |
| Total | 100.0% | 100.0% |
1,000
COMPANIES
OUR AWARD-WINNING EQUITY RESEARCH TEAM PROVIDES IDEA-DRIVEN COVERAGE OF MORE THAN 1,000 COMPANIES
29.4%
GROWTH
IN M&A AND ADVISORY REVENUES SINCE COLLINS STEWART HAWKPOINT ACQUISITION
GEOGRAPHIC BREAKDOWN OF GLOBAL M&A AND ADVISORY REVENUE DURING FISCAL 2014
Geographic Breakdown of Global M&A and Advisory Revenue During Fiscal 2014
(%)
| Country | Geographic Breakdown of Global M&A and Advisory Revenue During Fiscal 2014 (%) |
| Canada | 21 |
| UK and Europe | 64 |
| US | 12 |
| Asia-Pacific and Other | 3 |
13.8%
INCREASE
in annual revenue
Canaccord Genuity achieved a record performance in the UK and Europe during fiscal 2014, and we have established ourselves as a market leader in this geography. The breadth and quality of our service offering is being recognized by clients now more than ever before as we continue to win more lead mandates and outperform our peers across key sectors of the market.
In the UK and Europe, Canaccord Genuity demonstrated the strength of our competitive advantage during fiscal 2014, generating $212.3 million in revenue for fiscal 2014, a 34.3% increase from the previous year and a record for this business. The strong performance was driven largely by our investment banking division, which boasted revenue of $60.2 million, an 80.0% increase from the previous year. The scale of our investment banking practice was evident throughout the year as we held leading roles in several high-profile IPO transactions including:
(All UK IPOs during period from 2006 through April 2014)
| Rank | Bank | Total deal value ($US billions) | Deal count | |
| 1 | Canaccord Genuity | $ 14.9 | 92 | |
| 2 | JP Morgan | 61.5 | 72 | |
| 3 | Investec | 9.2 | 49 | |
| 4 | Credit Suisse | 41.7 | 43 | |
| 5 | Citi | 55.7 | 41 |
Source: Bloomberg, Dealogic as at April 8, 2014
34.3%
INCREASE
IN REVENUE YEAR OVER YEAR
35.6%
INCREASE
in advisory revenue
80.0%
INCREASE
in underwriting revenue
UK and Europe Capital Markets Revenue
(C$ millions, fiscal years)
UK and Europe Capital Markets Revenue
(C$ millions, fiscal years)
| Year | UK and Europe Capital Markets Revenue |
| 2010 | 82.5 |
| 2011 | 92.7 |
| 2012 | 51.2 |
| 2013 | 158.1 |
| 2014 | 212.3 |
In the United States, Canaccord Genuity’s capital markets group earned record revenues, demonstrating the strength of this business, and the impact of strategic initiatives we have taken to grow this business.
Our US capital markets business generated a record $216.5 million in revenue during fiscal 2014 – a 41.2% increase from the previous year. This performance was largely attributable to the success of our investment banking business, with revenue of $62.0 million, a 158.4% increase from the prior year. In addition, the active financing market throughout fiscal 2014 was coupled with a strong performance from our International Equities Group, which increased revenues by 52.1%.
On October 23, 2013, our US capital markets division held a charity trading day, where designated agency commissions on that day were donated to Youth, I.N.C. In total, Canaccord Genuity’s US team generated approximately US$1.0 million for at-risk children through the eighth annual Trading Day for Kids.
The American market remains a major opportunity for Canaccord Genuity, and we are committed to growing our relevance in this market. During the fiscal year, we built upon our existing US fixed income capabilities with the addition of a High Yield and Loan team, giving us an immediate presence in the secondary high yield institutional market, and the ability to reach a growing mid-market client base in the US. We also added significant depth and experience to our research team through new hires in the Healthcare & Life Sciences and Technology sectors, and senior investment bankers covering Technology, Consumer & Retail and Transportation & Industrials.
Our expansion efforts in banking, research, and sales and trading provide us with greater opportunities and make our business well positioned for continuing success.
35.2%
OF CANACCORD GENUITY’S TOTAL 2014
REVENUE WAS GENERATED IN THE US
158.4%
INCREASE
IN INVESTMENT BANKING REVENUE IN THE US COMPARED TO THE PREVIOUS YEAR
RECORD US REVENUE
(C$ millions, fiscal years)
RECORD US REVENUE
(C$ millions, fiscal years)
| Year | Record US Revenue |
| 2010 | 97.6 |
| 2011 | 106.2 |
| 2012 | 79.5 |
| 2013 | 153.4 |
| 2014 | 216.5 |
In Canada, Canaccord Genuity experienced subdued growth as a result of the market environment that persisted throughout fiscal 2014. Despite the macro challenges in this geography, our Canadian business contributed 24% to Canaccord Genuity’s overall revenue during the fiscal year.
Canaccord Genuity continues to be the leading independent full-service investment bank in Canada. This business generated $148.5 million in revenue during fiscal 2014, led primarily by an 18% growth in underwriting revenues. Throughout the year, our investment banking team led several prominent M&A and advisory transactions, highlighting the value of our long-standing institutional and corporate relationships:
The strength of our equity underwriting business in Canada remains a fundamental component of our success in this geography. Throughout the year, we led or co-led 39 transactions over $1.5 million in Canada, raising $1.6 billion for clients.
In total, we participated in 204 transactions, raising $18.6 billion on behalf of clients. Our outlook remains optimistic for fiscal 2015 as all indicators point toward a resurgence in Canadian capital markets activity.
The deep sector knowledge of our Canadian research team was recognized this year as Canaccord Genuity was ranked as the top independent dealer in the 2013 Brendan Wood International Canadian Institutional Equity Report.
In the 2014 Thomson Reuters StarMine Broker Awards for Canada, Canaccord Genuity’s research was ranked third overall, earning nine awards in total. These honours underscore the quality and relevance of investment ideas that we provide our clients.
(C$ millions, fiscal 2014. Transactions completed in Canada by Canadian investment banks)
| Rank | Bank | Deal count | Total deal value (M) | |
| 1 | RBC Capital Markets | 71 | $ | 34,814 |
| 2 | CIBC | 41 | 25,700 | |
| 3 | BMO Capital Markets | 38 | 23,587 | |
| 3 | TD Securities | 38 | 15,419 | |
| 5 | Scotiabank | 33 | 24,150 | |
| 6 | Canaccord Genuity Corp. | 23 | 7,232 | |
| 6 | National Bank Financial Inc. | 23 | 7,109 | |
| 8 | GMP Securities | 18 | 3,838 | |
| 9 | FirstEnergy Capital Corp. | 15 | 2,167 |
Source: Bloomberg
17.9%
GROWTH
IN UNDERWRITING REVENUES
With an expanded service offering and diversified sector coverage, our Asia-Pacific capital markets team has successfully captured greater investment banking and advisory mandates, and built a strong pipeline of activity across sector verticals. During 2014, our investment banking revenue in the region increased by 73%. For the fiscal year, our Asia-Pacific operations participated in 26 transactions, raising $635.6 million for clients.
As we continue to establish our capability in the region, we have taken an integrated approach to leadership. Marcus Freeman will now lead Canaccord Genuity’s Asia-Pacific business, in coordination with Alex Tan in our Singapore operation. In addition to overseeing our Australian operations, Marcus will now drive Canaccord Genuity’s coordination efforts with Singapore, and lead efforts in Beijing and Hong Kong, to facilitate a seamless approach to providing our differentiated service offering to clients. In the year ahead, we expect to develop robust sales, trading and research presence in the strategic Singapore market.
Canaccord Genuity is a leading mid-market investment bank on Singapore’s junior exchange, SGX Catalist, sponsoring 22 companies on this growth-oriented market, which attracts international deals from China, South and Southeast Asia, and Australia.
Notable mandates during fiscal 2014 include:
54.4%
INCREASE
IN REVENUES FOR FISCAL 2014
Australian capital markets business named Best Equities House in the Non-bank Owned category of the 2013 East Coles survey