Siebert Financial Corp. Launches Capital Markets Group
Rhea-AI Summary
Siebert Financial Corp. (NASDAQ: SIEB) has announced the launch of its new Capital Markets Group, marking a strategic expansion into institutional markets. The company has appointed Randy Billhardt, a Wall Street executive with over 30 years of experience, as Head of Capital Markets Group.
Billhardt, formerly with B. Riley Financial, brings significant expertise in capital markets, having led more than 50 debt offerings and raised over $4 billion for firms including Atlanticus, Xoma, Harrow, B&W and Alta Group. Under his leadership, the division will focus on leveraging Siebert's retail distribution network to deliver innovative financial products and strengthen institutional capabilities.
CEO John Gebbia Senior indicated that the company plans to enhance its offerings with IPO underwriting, secondary offerings, and baby bonds. The initiative follows Siebert's expansion in 2024 and aims to create financial solutions for individuals, institutions, and brokers.
Positive
- Expansion into institutional markets through new Capital Markets Group
- Appointment of experienced executive with track record of raising $4+ billion in debt offerings
- Planned expansion into IPO underwriting and secondary offerings
- Enhanced retail distribution network capabilities
Negative
- None.
Insights
The launch of Siebert's Capital Markets Group represents a strategic pivot that could significantly boost revenue streams. Randy Billhardt's track record of raising <money>$4 billion</money> through 50+ debt offerings signals strong execution capabilities. His expertise in unsecured notes and preferred stock issuance positions Siebert to capture higher-margin institutional business while leveraging its existing retail network.
The expansion into IPO underwriting and secondary offerings could generate substantial fee income, while ATM capabilities provide a steady revenue stream. For a company with a market cap of <money>$127.4 million</money>, this move could materially impact financial performance. Think of this as a boutique shop adding a premium service line - it's not just about new products, but about accessing more profitable market segments.
The timing of this strategic expansion aligns with current market dynamics where retail brokerages face margin pressure from zero-commission trading. By diversifying into institutional services, Siebert creates a hedge against retail revenue volatility. Billhardt's connections from B. Riley Financial could accelerate client acquisition in the institutional space.
The baby bonds initiative is particularly interesting - these fixed-income securities typically appeal to retail investors seeking steady income, creating natural synergy between the new institutional capabilities and Siebert's existing retail base. This hybrid approach could provide competitive advantages over pure-play retail or institutional firms.
The strategic value extends beyond immediate revenue potential. Having worked with prominent firms like Atlanticus and Xoma, Billhardt brings established relationships that could fast-track Siebert's institutional market penetration. His experience with B. Riley Financial, a successful middle-market investment bank, suggests he understands how to scale capital markets operations in Siebert's target segment.
For context, successful mid-tier investment banks typically generate <percent>30-40%</percent> of revenues from capital markets activities. If Siebert can capture even a modest share of this market, it could transform their business model and valuation metrics.
Siebert appoints established Wall Street executive Randy Billhardt as Head of Capital Markets Group division to enter Institutional Markets and amplify Retail Growth
NEW YORK, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Siebert Financial Corp. (NASDAQ: SIEB) today announced the launch of its new Capital Markets Group, a significant step in the company’s strategic expansion into institutional markets, further enhancing its retail growth. Randy Billhardt, a seasoned Wall Street executive with more than 30 years of experience, including leadership roles at B. Riley Financial, will lead the division as Head of Capital Markets Group.
Billhardt brings a wealth of expertise and a proven track record in capital markets, making him an ideal leader to drive this transformative initiative. He has been delivering remarkable results in capital markets for more than 15 years and is an established leader and partner in unsecured notes and preferred stock issuance.
Billhardt’s product expertise and execution capabilities have enabled his team to book more than 50 debt offerings, raising more than
“This is an exciting milestone for Siebert. We couldn’t ask for better talent than Randy,” said John Gebbia Senior, CEO of Siebert Financial. “His understanding of the institutional landscape combined with his leadership acumen puts us in a great position to unlock tremendous growth opportunities and better serve our clients. Given his expertise you can expect Siebert to enhance our offerings with things like IPO underwriting, participating in secondary offerings and offering baby bonds.”
“I’m honored to join a reputable Wall Street firm at this pivotal moment. The launch of the Capital Markets Group reflects Siebert’s forward-thinking strategy, and I’m thrilled to lead this effort to expand our institutional platform and deliver exceptional value to our clients,” said Mr. Billhardt. “I look forward to focusing on the newly launched Capital Markets Group while continuing to help issuers raise capital by leveraging our retail distribution and At-the-Mkt (ATM) capabilities.”
The launch of the Capital Markets Group aligns with Siebert’s ongoing commitment to innovation and client success following its expansion in 2024. This initiative underscores the firm’s mission to create financial solutions that empower individuals, institutions and brokers to thrive in today’s dynamic markets.
About Siebert Financial Corp.
Siebert is a diversified financial services company and has been a member of the NYSE since 1967 when Muriel Siebert became the first woman to own a seat on the NYSE and the first to head one of its member firms.
Siebert operates through its subsidiaries Muriel Siebert & Co., LLC, Siebert AdvisorNXT, LLC, Park Wilshire Companies, Inc., RISE Financial Services, LLC, Siebert Technologies, LLC and StockCross Digital Solutions, Ltd, and Gebbia Entertainment LLC. Through these entities, Siebert provides a full range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions in addition to entertainment and media productions. For over 55 years, Siebert has been a company that values its clients, shareholders, and employees. More information is available at www.siebert.com.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release, that are not historical facts, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.
These forward-looking statements, which reflect beliefs, objectives, and expectations as of the date hereof, are based on the best judgment of management of Siebert. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions, global economic downturns resulting from extraordinary events; securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting Siebert’s business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans; and other consequences associated with risks and uncertainties detailed in Part I, Item 1A - Risk Factors of Siebert’s Annual Report on Form 10-K for the year ended December 31, 2023, and Siebert’s filings with the SEC.
Siebert cautions that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact its business. Siebert undertakes no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
Media Contact:
Deborah Kostroun, Zito Partners
deborah@zitopartners.com
+1 (201) 403-8185
FAQ
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