March 1, 2008
they have issues
If the mark of a successful investment firm is repeat business, then CastleOak Securities L.P. is marking its territory all the way to the bank. Since July 2006, the company has co-managed multiple deals for more than 35 blue-chip clients.
Less than a month after receiving approval from the Financial Industry Regulatory Authority, the capital market’s regulatory body, CastleOak’s first deal earned $300 million for General Electric Capital Corp. Since then, CastleOak has co-managed nine more deals with GE Capital, seven for Citigroup, six for American Express, and three for Goldman Sachs.
After raising $90 billion in managed issues, CastleOak, under the leadership of President and CEO David R. Jones, could rise to the No. 3 position on this year’s be investment banks list.
Jones, 43, founded CastleOak in December 2005 after leaving Blaylock &
Co. (No. 3 on the be investment banks list with $85 billion in managed issues) with the uncommon idea of creating a minority investment firm in collaboration with a strategic partner. By March 2006, Jones had a definitive agreement with Cantor Fitzgerald, who purchased a 45% stake in the company.
“We thought that the combination of Dave’s track record and client relationships layered on top of our infrastructure and support would create an exciting business model,” says Laurence Rose, senior managing director at Cantor Fitzgerald.
“We’re probably the most well-capitalized minority-owned firm. It allows us to do bigger deals. We don’t have to turn down transactions because we can use our own capital for underwriting,” says Jones.