JMP Group LLC, together with its subsidiaries, operates as a diversified capital markets company.
The company provides investment banking, sales and trading, and equity research services to corporate and institutional clients, as well as alternative asset management products and services to institutional investors and high-net-worth individuals. In addition, the company invests in corporate credit instruments through collateralized loan obligations and direct investments, and it serves as the i...
JMP Group LLC, together with its subsidiaries, operates as a diversified capital markets company.
The company provides investment banking, sales and trading, and equity research services to corporate and institutional clients, as well as alternative asset management products and services to institutional investors and high-net-worth individuals. In addition, the company invests in corporate credit instruments through collateralized loan obligations and direct investments, and it serves as the investment advisor to a business development company under the Investment Company Act of 1940.
Principal Business Lines
The company conducts its investment banking and institutional brokerage business through JMP Securities LLC (JMP Securities); conducts its asset management business through Harvest Capital Strategies LLC (HCS), JMP Asset Management LLC (JMPAM), and HCAP Advisors LLC (HCAP Advisors); and makes certain principal investments through JMP Investment Holdings LLC, JMP Capital LLC, and other subsidiaries.
JMP Securities is a U.S. registered broker-dealer under the Securities Exchange Act of 1934, as amended and is a member of FINRA. JMP Securities provides equity research and sales and trading services to institutional brokerage clients, as well as capital raising and strategic advisory services to corporate clients. JMP Securities operates as an introducing broker and does not hold funds or securities for, or owe any money or securities to, customers and does not carry accounts for customers. All customer transactions are cleared through another broker-dealer on a fully disclosed basis.
HCS is a registered investment advisor under the Investment Advisers Act of 1940, as amended, and provides investment management services for investors through investment partnerships and other entities managed by HCS, including venture and private equity funds. JMPAM is the investment manager of private equity funds that invest in real estate and real estate related enterprises and provides credit to small and midsize private companies. HCAP Advisors is a majority-owned subsidiary that manages the investment activities of Harvest Capital Credit Corporation, a publicly-traded business development company (BDC) offering customized financing solutions to small and middle-market companies.
The company’s four revenue-producing business lines—investment banking, sales and trading, equity research, and asset management—across three target industries—technology, healthcare, and financial services and real estate—combine to form a diversified business model.
Investment Banking
The company’s investment banking department provides capital raising services, mergers and acquisitions transaction services, and other strategic advisory services to corporate clients. The company focuses its efforts on small and middle-market companies in three broad industries, such as technology, healthcare, and financial services and real estate.
By focusing on the company’s three target industries, it has developed a comprehensive understanding of the unique challenges and demands involved in executing corporate finance and strategic advisory assignments in these sectors. A significant portion of its corporate finance revenue is earned from small- and mid-capitalization public companies, and the balance is earned from private companies.
Corporate Finance
The company assists its publicly traded and privately held corporate clients with capital raising activities, which include the underwriting and private placement of a wide range of equity and debt securities, including common, preferred, and convertible securities. Its public equity underwriting capabilities include initial public offerings, follow-on offerings, and at-the-market offerings. The company also arranges private investments in public equity transactions and privately negotiated, registered direct stock offerings on behalf of its publicly traded clients. For its privately held clients, the company acts as an agent in private placements of equity and debt securities. The company typically places securities with its client base of institutional investors, private equity and venture capital funds, and high net-worth individuals.
Mergers and Acquisitions and Other Strategic Advisory
The company works with corporate clients on a broad range of strategic matters, including mergers and acquisitions, divestitures and corporate restructurings, valuations of businesses and assets, and fairness opinions and special committee assignments. The company provides its advice to senior executives and boards of directors of client companies in connection with transactions that are typically of significant strategic and financial importance to these companies. It serves a variety of corporate clients, from private companies in early stages of growth to mature businesses either publicly or privately held, the values of these transactions range in size.
Sales and Trading
The company’s sales and trading department provides institutional investors with capital markets intelligence, distributes its equity research product, and communicates investment recommendations about individual equities. In addition, its sales and trading staff executes securities trades on behalf of its institutional clients and markets the securities of companies for which the company acts as an underwriter. The company’s sales and trading professionals work with its equity research staff to provide insight and differentiated investment advice to brokerage clients nationwide.
Equity Research
The company’s research department is charged with developing proprietary investment themes, anticipating secular and cyclical changes, and producing action-oriented reports that will assist its institutional brokerage clients with their investment decisions. Its analysts cultivate primary sources of information in order to refine their quantitative and qualitative assessments.
The company’s equity research encompasses three industries, including technology, healthcare, and financial services and real estate; and is concentrated on the following sectors within each industry:
Technology: Includes cybersecurity, digital media, energy technology and services, industrial technology, internet, IT infrastructure, and software.
Healthcare: Includes biopharmaceuticals, biotechnology, and medical devices and supplies.
Financial Services and Real Estate: Includes alternative asset managers, commercial finance, consumer finance, financial technology, housing, insurance, investment banks and brokers, land development, mortgage finance, real estate investment trusts, and real estate services and technology.
As of December 31, 2020, the company’s research department included 20 publishing research analysts providing investment recommendations on 364 public companies divided among its three target sectors.
Asset Management
The company, through HCS, JMPAM and HCAP Advisors, manages venture capital funds, private equity funds, a private debt fund, real estate funds, and a publicly-traded BDC that provides customized financing solutions to small and midsize companies.
Regulation
JMP Securities is registered as a securities broker-dealer with the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).
JMP Securities is subject to the SEC’s Uniform Net Capital Rule, Rule 15c3-1. The company is also subject to the USA PATRIOT Act of 2001, which imposes obligations regarding the prevention and detection of money-laundering activities, including the establishment of customer due diligence, customer verification and other compliance policies and procedures.
The company’s asset management subsidiaries, HCS, JMPAM, and HCAP Advisors, are SEC-registered investment advisers, or in the case of JMPAM, a relying advisor, and are accordingly subject to regulation by the SEC.
History
JMP Group LLC was founded in 1999. The company was incorporated in Delaware in 2014.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
