Portland-based venture capital firm acquired by Midwestern financial services firm
A $ 3.5 billion St. Louis financial services firm bought North Atlantic Capital Corp., a Portland-based venture capital management firm, for an undisclosed price.
In a press release on Friday announcing the acquisition, Stifel Financial Corp. (NYSE: SF) also announced that it will invest in a future North Atlantic small business investment firm and rename the company as North Atlantic Capital, a Stifel company.
A spokesperson for Stifel did not disclose further details but told Mainebiz that the North Atlantic leadership will remain intact and join Stifel.
North Atlantic Managing Director Mark J. Morrissette said in the statement: “Stifel brings a wealth of resources to support the future growth of the North Atlantic. By leveraging Stifel’s strengths in investment banking, institutional research and risk lending, we see a significant opportunity to strengthen North Atlantic’s competitive position in the venture capital market.
Courtesy / Capital of the North Atlantic
Mark Morrissette, Managing Director of North Atlantic Capital Corp.
Victor Nesi, Co-Chairman of Stifel Financial and Head of Institutional Group Stifel, added: “We are delighted to find a partner with a solid investment history and an experienced team that fits our culture well. Our plan is to leverage North Atlantic’s deep understanding of venture capital markets to help us create a strong service offering for high growth private technology companies.
North Atlantic works primarily with VC-funded companies that have annual sales of $ 10 million or more. The company makes initial investments of $ 5-10 million, often in the form of debt subordinated to working capital loans. Since its launch in 1986 by co-founder and CEO David Coit, North Atlantic has invested in over 100 companies across the United States, including Portland-based WEX Inc. (NYSE: WEX) and IDEXX Laboratories (Nasdaq : IDXX), headquartered in Westbrook.
Stifel, which dates back to 1890, provides a range of investment, securities, loan and trust banking services through its subsidiaries. The company reported 2019 revenue of $ 3.51 billion and assets totaling $ 24.6 billion, according to its latest annual report. Stifel is the sixth largest investment firm in the country, based on the number of financial advisers.