Texas Capital Launches Broker, Hopes To Double Team In 12-18 Months

Texas Capital Bancshares takes another step forward in its journey to become the largest full-service financial company in Texas.

The parent company of Texas Capital Bank on Monday launched Texas Capital Securities, its affiliate brokerage, which will help it generate commission-based income and profits. TCS will provide M&A advisory, capital raising, underwriting, sales and trading and hedging services to its clients.

Daniel Hoverman was appointed head of investment banking at Texas Capital Bank on September 1.

The Dallas-based bank first announced plans to form an investment banking division and appoint Daniel Hoverman as managing partner and chairman of Texas Capital Securities in a strategic update call on September 1st. At the time, Texas Capital’s application was on hold with the Financial Sector Regulatory Authority.

As part of its updated strategic plan, Texas Capital said Commissions from investment banking, treasury management and wealth management are expected to increase from 11% of revenue in 2020 to 15-20% of revenue in 2025.

The investment banking team now consists of around 40 people, Hoverman said. It hopes to double its size over the next 12-18 months and sees TCS as laying the foundation for a full-service investment banking platform.

“This growth will come from an extension of products and services to sales and commerce and to more market oriented capabilities,” he said. “We are building a trading room [at the office]. “

Hoverman, who holds a bachelor’s degree from Yale University and degrees in law and commerce from Columbia University, has over 20 years of experience in investment banking, corporate advisory and capital markets. capital. Most recently, he was Managing Director, responsible for business advice and sponsor coverage at Regions Bank in Dallas.

Hoverman said he has noticed that a number of the bank’s clients need advice on topics such as the trading market, even if they don’t sell their business next year. He wants the bank to have the insight and ability to meet a client’s needs at all times, he said.

“It is clear that there has been a very active environment for [mergers and acquisitions] and capital market activity, but the past two years have been largely unpredictable, ”he said. “But products aside, what we see all the time is the desire for high quality, sound advice. “

Texas Capital has more than $ 36 billion in assets and more than 1,800 employees.

Former JPMorgan Chase senior executive Rob Holmes joined the bank in January 2021 as the new CEO and changed a number of senior positions as he works to grow the bank into a full-service business.

Holmes has recruited several former executives from JPMorgan, most recently Jay Clingman, who heads TCB’s commercial banking division after more than 30 years at JPMorgan, most recently leading an intermediary banking team in North Texas and the United States. Oklahoma.

Nearly 500 Texas banks are vying for their territory in the business-friendly state that is attracting record numbers of people and businesses.  (Illustration by artist Michael Hogue)

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