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Capital Markets


A Dominant Independent in the Canadian Brokerage Space

GMP’s Capital Markets segment operates under two global brands, GMP Securities and GMP FirstEnergy, delivering a broad range of investment banking, including advisory and underwriting, research and sales and trading services, across both equity and debt capital markets, to corporate and institutional clients.


GMP Securities is recognized as a leading common equity underwriter and financial advisor to the small- and midcap segments of the domestic capital markets. GMP FirstEnergy is a trade name and division of GMP Securities, and is exclusively dedicated to the energy sector. Today, GMP is the only Canadian fully integrated independent with a top-tier franchise in both the mining and energy sectors.

GMP’s Capital Markets business combines the rich history and transactional expertise of an industryleading independent Canadian broker-dealer, with a formidable fixed income platform in the United States, and a commodities boutique in the United Kingdom and Asia, to meet clients’ short- and long-term strategic objectives. Further strengthening the firm’s non-commodities franchise is a priority in 2017.

Through GMP Securities/GMP FirstEnergy, clients gain access to one of the most extensive institutional and retail networks in Canada for new product distribution as well as an expansive global distribution capabilities’ network that offers issuers broad exposure to investors across the globe.

Relationships Matter
GMP understands relationships are built over years and across multiple market cycles. These long-standing relationships and extensive transactional experience have been critical in helping entrepreneurial clients build and grow their businesses and, more importantly, navigate the complexities of global capital markets. Since inception in 1995, GMP’s sole focus has been on small- to mid-cap segments of the capital markets. These growth segments are vital to the success of the Canadian economy. It is in this arena that GMP has forged a leadership position in its depth of knowledge of these segments among Canadian investment banks. As a fiercely independent and integrated franchise, the firm believes it is differentiated by superior execution, proven and substantial transactional expertise and the ability to efficiently coordinate across investment banking, sales and trading and research to deliver seamless and unbiased advice and product-agnostic solutions to clients. In today’s uncertain and challenging business environment, the role of the independent player, unencumbered by the potential conflicts of interests inherent in large bank-owned firms, has never been more critical if we are to continue seeing the flow of capital to the small- to mid-cap segments. Offices across Canada, the United States, the United Kingdom, the Bahamas and Asia serve as gateways to the full capabilities and expertise of the franchise.

Members of the Capital Markets Team:
(From left to right): Ashley Kowal, Senior Vice President, Equity Capital Markets, Rob Weir, Vice Chairman, Head of Institutional Equity Sales, Kenrick Sylvestre, Director, Institutional Equity Sales, and Tracy Zhao, Director, Institutional Equity Sales




Investment Banking
The firm’s investment banking professionals aspire to be the leading, trusted advisor and financier to its core clients across their entire business life-cycle. Skilled teams of professionals are highly conversant across the entire corporate finance spectrum and combine substantial product knowledge, deep industry expertise and extensive transactional experience to provide best-in- class advice and superior execution. Employing a disciplined approach to client solutions, experienced industry professionals are committed to working closely with clients to identify the best financing and strategic solutions to meet their needs. The complete and extensive resources of the firm are dedicated to helping its professionals deliver on that promise. Clients also benefit from compelling and proven after-market liquidity and trading support facilitated through highly effective and skilled sales and trading teams and focused research.

In 2016, investment banking fees declined 15% compared with 2015 led by a 24% decrease in advisory fees. 2015 included notable fees in the Healthcare sector. Energy investment banking fees rose 13% compared with 2015, while fees from GMP Securities’ mining franchise were largely unchanged over the same period.

In its underwriting business, GMP’s highly skilled and sector-focused investment bankers deliver superior transaction execution across a variety of equity and debt securities, including both public and private capital markets transactions. The team has extensive experience and a successful track record of raising capital for its corporate clients. GMP Securities is recognized as a leading common equity underwriter in the Canadian capital markets and a leading common equity underwriter to the global mining and energy sectors. In 2016, GMP Securities participated in 196 equity and debt underwriting transactions completed in Canada with an aggregate value of $32.6 billion, leading or coleading 43 of these transactions valued at $2.2 billion.

GMP Securities has a well-earned reputation as a trusted business advisor. Its M&A professionals are industry specialists focused on developing a deep understanding of its clients’ businesses.

During 2016, GMP Securities advised on 16 completed M&A transactions with an aggregate value of US$4.3 billion. M&A experts deliver powerful insight across the firm’s core industry sectors and extensive transactional expertise. GMP Securities’ formidable advisory capabilities leave it well positioned to help clients recognize and execute on emerging M&A opportunities.

Canada
In Canada, GMP continues to be a dominant player in all aspects of the small- and mid-cap segments of the capital markets across its focus industries:

Mining
Energy (GMP FirstEnergy)
Technology and Healthcare
Industrials and Special Situations
Real Estate
Financial Services

The recent acquisition of GMP FirstEnergy adds substantial energy investment banking capabilities to GMP’s platform in Canada and the United Kingdom through a combination of global exploration and production industry and acquisition and divestiture experience. The firm’s global energy expertise and extensive coverage provide clients with deep industry knowledge and market intelligence on hundreds of energy companies in various stages of development worldwide.

United States

GMP Securities is one of the largest independent fixed-income dealers in the United States, specializing in high-yield and convertible debt and is recognized as an emerging leader in high-yield origination. The firm has built a reputation for executing large and highly-liquid transactions and structured, customized debt financings. GMP Securities’ has a deep understanding of the debt markets and is focused on delivering origination and structuring expertise together with exceptional distribution and trading capabilities to a diverse investor base. GMP’s U.S. investment banking capabilities also include a New York-based Debt Work- Out and Restructuring business.

International

Through its London office, GMP FirstEnergy is a prominent energy player in equity financings, M&A and A&D mandates throughout Europe, Africa, Latin America, Eastern Europe, Australia and the Middle East. Additionally, GMP Securities maintains a small and highly effective team in Asia to continue offering critical access to key Asian accounts on buy and sell mandates for its North American investment banking teams.

Sales and Trading

The proliferation of electronic and algorithmic trading, direct market access, dark pools and smart order routing has permanently altered sales and trading businesses across the industry. This phenomenon is known as ‘disintermediation’, where the traditional role of the institutional broker is being devalued by a wave of technological advancements in trading and regulatory changes.

In response, GMP substantially streamlined its sales and trading professionals and changed the way it deploys capital in its trading business. GMP identified its core franchise names and, simply put, strives to dominate the trading in each of those securities. The firm believes the institutional market and trade flow intelligence is central to GMP Securities’/GMP First Energy’s ability to be a meaningful industry player in executing bought deal financings. As such, the need to properly deploy capital in its secondary business has never been more essential. Accordingly, sales and trading works very closely with origination professionals on all securities offerings. Through high-level and strategic internal collaboration, the firm is able to leverage GMP Securities’ comprehensive resources to provide clients with the competitive advantage they seek. The firm engages largely in agency-only transactions which ensure that its recommendations are always based on unbiased advice and free of potential conflict.

GMP is a client-focused sales and trading platform committed to delivering the firm’s resources before, during and after a successful transaction. Clients regularly turn to GMP Securities/GMP FirstEnergy for deep liquidity and a proven ability to execute transactions throughout the market cycle. GMP has forged a leadership position in both equity and debt capital markets precisely because it delivers superior execution, timely market insights and exceptional client service. Its success in executing large and complex transactions is rooted in the ability to connect clients to opportunities and investors worldwide by employing a formidable network of relationships.

Equity
Since inception, equity sales and trading has been GMP Securities’ core area of expertise. GMP Securities’ reputation is founded on its superior execution of transactions and the ability to get the job done. It is consistently recognized as a leader in the origination, distribution and trading of equity and equity-related securities. The firm’s equity sales and trading is focused on delivering compelling institutional market and trade flow intelligence synonymous with the GMP Securities franchise. Clients also benefit from strong institutional and retail networks for new product distribution that are based on long-standing and extensive industry relationships.

GMP FirstEnergy
Energy first, last and always. Energy has been the firm’s only focus for nearly a quarter century. GMP FirstEnergy is one of the most active traders of energy securities in the industry, encompassing both public and private securities globally. GMP FirstEnergy’s professionals have extensive backgrounds and expertise in global energy as well as some of the industry’s deepest energy buy-side relationships. Focused sector expertise gives GMP FirstEnergy deeper insights than most competitors and a keen ability to identify emerging trends and opportunities to help clients achieve their financial goals. A global network and industry-leading research, in addition to the broader capabilities and resources of GMP Securities, are the foundations of the firm’s unmatched market intelligence. Leveraging expert, up-to-the-minute analysis, GMP FirstEnergy has a well-earned reputation for quality and efficient execution that is tailored to its clients’ interests.

Fixed Income
GMP Securities offers clients comprehensive market expertise and insight across a wide range of global debt instruments that includes: high-yield and distressed bonds, convertible debt, investment grade debt and international bonds. The firm’s sales and trading professionals have cultivated deep and long-standing relationships with leading institutional fund managers, U.S. banks and wholesale market brokers. GMP Securities’ trading strategies are based on actionable insights and market-trading intelligence. These strategies are supported by an extensive and wide-reaching network of global counter-party relationships and strong, secondary market-trading acumen. GMP Securities is also recognized as a leading market-maker in a wide range of debt securities. Collaborating closely with a top-calibre team of investment banking professionals and desk analysts, GMP Securities’ sales and trading professionals provide clients with immediate access to a first-rate distribution network for debt issuance, quality independent fixed-income research and prospective market opinions.

Research
GMP Securities is committed to fundamental research. The research team provides prescient opinions and differentiated investment insights that enable clients to make informed decisions. Experienced professionals in Canada, the United States and the United Kingdom provide equity and fixed-income research on hundreds of companies spanning most major industry sectors. In particular, the firm is widely recognized for its comprehensive and in-depth analysis of the mining and oil and gas sectors. The research team works closely with the firm’s sales, trading and investment banking professionals to translate their insights into revenue-generating transactions that fulfill clients’ objectives.

GMP FirstEnergy
The acquisition of GMP FirstEnergy in 2016 more than doubled the firm’s research presence in Calgary and London in terms of both headcount and energy stocks under coverage. The firm’s energy expertise now includes not only extraction, but also oil field services and storage/transportation, and its research effort now covers commodities, industries, and individual companies.

Members of the Capital Markets Team:
(From left to right): Ron D’Ambrosio, Managing Director, Investment Banking, Robert Fitzmartyn, Managing Director, Head of Energy Institutional Equity Research, and Trent Boehm, Vice Chairman, Co-Head of Energy Sales and Trading