SOUNDVIEW TECHNOLOGY GROUP INC

SOUNDVIEW TECHNOLOGY GROUP INC

Previous company name
WIT SOUNDVIEW GROUP INC
Name change date
7/17/2000
Company Overview
The company is an American business that provides investment banking services. It was incorporated in March of 1996 and has its registered business head office in Old Greenwich, Connecticut.
The company undertakes a comprehensive sell-side research on more than 160 technology companies in the United States. Its brokerage operations offer sales and trading services to institutional investors. In addition, its investment banking services include public underwriting, mergers and acquisitions, strategic services and private equity. Further, the company manages venture capital funds.
The company operates as a subsidiary of Charles Schwab Corporation, a banking firm in the United States.
Business Summary
SoundView Technology Group, Inc. is a research-driven, technology-focused securities firm that produces comprehensive sell-side research on over 160 technology companies. The Company’s brokerage operations provide a variety of sales and trading services to institutional investors. It leverages its technology expertise through a sales force that has a comprehensive understanding of the complex and diverse technologies involved in technology-focused investing. The Company’s investment banking services include public underwriting, mergers and acquisitions, strategic services and private equity. Its venture capital operation has established and manages a number of venture capital funds that provide investors with the opportunity to participate in technology-related investments.
Description and history
SoundView Technology Group, Inc., incorporated on March 27, 1996, is a research-driven, technology-focused securities firm that produces comprehensive sell-side research on over 160 technology companies. The Company’s brokerage operations provide a variety of sales and trading services to institutional investors. It leverages its technology expertise through a sales force that has a comprehensive understanding of the complex and diverse technologies involved in technology-focused investing. The Company’s investment banking services include public underwriting, mergers and acquisitions, strategic services and private equity. Its venture capital operation has established and manages a number of venture capital funds that provide investors with the opportunity to participate in technology-related investments.

Brokerage Operations

A majority of the Company’s revenue is derived from customer commissions on brokerage transactions in equity securities for domestic and international institutional investors. The Company executes these transactions for over 530 institutional customers, consisting of mutual funds, pension and profit sharing plans, hedge funds, banks and money managers. Nearly 75% of its brokerage revenues come from its largest 100 clients. Institutional investors normally purchase and sell securities in large quantities, which requires special execution, sales and marketing expertise.

Bear Stearns & Co. clears the Company’s institutional customer transactions on a fully disclosed basis. Clearing services for the Company’s customers include the confirmation, receipt, execution, settlement and delivery functions involved in securities transactions, as well as safekeeping of customers’ securities and assets and certain customer record keeping, data processing and reporting functions. Under its agreement with Bear Stearns, the Company pays clearing and execution fees according to a schedule. In addition, the agreement requires Bear Stearns to share with the Company interest revenue earned in connection with margin and stock borrowing balances kept by its customers, and also provide the Company with fees on balances maintained by these customers with selected money market funds.

Investment Banking

The Company is a manager of public and private securities offerings, as well as a strategic advisor for technology companies. SoundView is a manager of initial public and follow-on offerings for technology companies. The Company also has a Mergers and Acquisitions Group, which works closely with clients to help them develop and refine their businesses. The Company offers its clients several types of advisory services: executing mergers, acquisitions and divestitures; identifying and building strategic partnerships and strategies; providing valuation work, and fairness opinions.

The Company has made investments in various privately held companies, primarily during 2000 and 2001, for the purpose of enhancing relationships for future investment banking activity. In addition, the Company has set up and invested in funds for the benefit of its employees. These funds invest in privately held companies and provide its employees with the opportunity to participate in the private equity market. Such funds, through their terms, have been used as an aid in the retention of key investment banking employees.

Venture Capital Group

The Venture Capital Group emphasizes investments in technology businesses and maintains a particular focus on software infrastructure, software applications, Web services, e-commerce companies and products and services that enhance digital businesses. The Company’s venture capital funds allow investors to pool their resources and gain access to a quality of deal flow traditionally available to proprietary funds backed by large institutions.

The Venture Capital Group manages a series of four funds (collectively, Dawntreader Fund II). Dawntreader Fund II raised approximately $265 million in February and March 2000. The investors in Dawntreader Fund II include publicly traded corporations, institutional investors and high-net-worth individuals. As of December 31, 2002, approximately 54% of the capital of Dawntreader Fund II was drawn down for investments. The Venture Capital Group also continues to oversee Wit VC Fund I, which is fully invested with approximately $39 million raised in 1999.

Business Line
Provides investment banking services; Manages venture capital funds
Subsidiary

Advisor
ERNST & YOUNG LLP
IPO date
6/1999
US SIC Code
6211
Company Address
1700, E. Putnam Avenue

City province or state postal code
06870, OLD GREENWICH, CT
Phone: +1 203 321 7000
Fax: +1 203 321 7300
Country address: UNITED STATES OF AMERICA
Website url: www.soundview.com