Piper Sandler sets goal of $2B in annual corporate i-banking revenue

Piper Sandler Cos. executives believe the company can eventually generate $2 billion in annual corporate investment banking revenues and set a target to reach that goal in the next five years, CEO Chad Abraham said during Piper Sandler's Feb. 10 earnings call.

This goal comes on the heels of a resurgent year for Piper Sandler's corporate investment banking business. The company generated $1.4 billion in corporate investment banking revenue in 2021, which marked an 88% increase year over year.

Company executives attributed the strong performance in 2021 to a record year in multiple sectors, including financial services, health care and technology.

Abraham said that the $2 billion target has been floated for years, but there are several factors and trends that have emerged that makes this target feasible to reach.

"Our two biggest businesses, health care and financial services. Once you have these great franchises, it's, in some ways, easier to grow what you're great at," Abraham said.

He also pointed to the progress that Piper Sandler has made in Europe and the potential growth opportunities that exist there.

An increase in managing directors is also paramount to reach the $2 billion goal, Abraham said.

"We do believe in that 5-plus year target, $2 billion, for banking, that some of that will come through corporate development. I think it's sort of safe to look at it, half-organic, [half] through corporate development," Abraham said.