Quoted banks and insurance firms, such as New York-based Canaccord Genuity Group, have struggled to keep pace with new regulatory and consumer scrutiny for the past couple of years, as well as to keep up with changes in their businesses and global competition.
“We are in such an environment now that an institution like ours is either going to have to change its business model, or put itself under significant scrutiny,” says CEO Dan Daviau.
Canaccord Genuity Group is publicly traded and traded on the New York Stock Exchange, but is also planning a major expansion, in Europe, that involves pulling back from some of its more lucrative markets.
You can read more from Daviau, whose company had net revenue of $1.76 billion in 2018, in an interview here:
“If you are set on the high side of where the business is in every market and where the regulators are, it is very difficult to make that transition,” says Daviau.
Despite the tough times, Daviau, who became CEO of the company in 2016, says that he is optimistic about the future of the industry. One reason is the major shift underway towards environmental sustainability, he says.
“If you are not totally focused on the environment, your business will be a disaster,” he says.
What is Canaccord Genuity Group?
Canaccord Genuity Group is an international financial advisory and investment banking services firm. The company is headquartered in Toronto, with offices in Australia, Brazil, Hong Kong, London, New York, Singapore, Thailand, Mexico, Singapore, Taiwan, South Africa, Turkey, United Arab Emirates, and the US.
One of its major clients is private equity firm Silver Lake Partners, which is focused on a wide range of investments in technology, digital media, and media content.
Canaccord Genuity Group has operations around the world. It is focused on providing advisory and investment banking services to institutional investors, some of the world’s biggest corporations, and private clients. It has about 1,600 employees.
The company’s business consists of a set of investment banking activities, including investment banking, equity and fixed income underwriting, M&A advisory, equity and debt underwriting, and asset management and private banking. It also conducts broking activities with professional clients, and companies, such as active market makers, and options-based market makers. It also conducts marketing and sales activities and provides corporate services, including brokering debt and equity securities, and managing fixed income and cash capital markets activities.
In November 2018, Canaccord Genuity Group became the first Canadian financial institution to partner with the Green Fund Group, a blockchain-enabled fund management and investment platform for closed-end funds. The company’s most recent acquisitions include web payroll provider WageWorks in 2017, plus a minority stake in Dutch financier Aegon NV and personalization broker SunGard Financial Services.
Its single biggest international client is Credit Suisse.
Daviau is a Canadian born and raised in Thunder Bay, Ont. A certified financial planner, Daviau has a background in financial services including retail banking, and joins Canaccord Genuity Group with a pedigree of innovation and leadership.
He began his career in 1983 and was involved in some of the industry’s early innovations, including the Canadian Home Owners Loan Guarantee Corporation, which he helped develop. He was part of the team at TD Bank, before taking on the role of Group Chief Operating Officer of Sun Life Financial in 2002, when Sun Life acquired TD’s financial services division.
After a stint as CEO of Barclays Canada and a consulting role with the Rotman School of Management, Daviau joined Canaccord Genuity Group in 2016.