Financial services companies have experienced substantial consolidation over the past 10 years, and it is believed this consolidation has created a significant market opportunity for an investment bank dedicated to serving the specialized needs of growth companies and growth investors. Since 1994, there have been approximately 30 acquisitions involving U.S. securities brokerage and investment banking firms that, by virtue of their middle market and/or growth sector expertise, would have been considered the direct peers and competitors.

In the wake of consolidation, boutique investment banking firms focused on growth companies and investors have emerged. Growth companies require a range of services delivered by expert, knowledgeable professionals, including research, sales and trading coverage and a broad range of investment banking capabilities designed to meet their needs throughout their lifecycle. Growth investors require a broad range of integrated brokerage services and specialized research that enable them to capitalize on investment opportunities resulting from the complex and dynamic technologies, products and distribution channels specific to the growth sectors.

Recent developments in the brokerage industry, including decimalization and the growth of electronic communications networks, or ECNs, have reduced commission rates and profitability in the brokerage industry and ultimately affected the provision of services to institutional investors. Many large investment banks have responded to lower margins within their equity brokerage divisions by reducing research coverage, particularly for smaller companies, consolidating sales and trading services, and reducing headcount of more experienced sales and trading professionals in order to transition to a low-touch brokerage model focused increasingly on large market capitalization companies.

The Company’s investment bankers provide two types of services: corporate finance and strategic advisory. The Company’s corporate finance practice is comprised of industry coverage groups that are dedicated to establishing long-term, profitable relationships and executing capital raising transactions. The Company’s strategic advisory practice focuses on developing creative ideas tailored to client goals and objectives through deep industry knowledge, significant transaction experience and strong corporate relationships with leading growth companies throughout its target sectors.

The Company offers a wide range of financial products designed to serve the needs of growth companies, including initial public offerings, follow-on and secondary offerings, equity-linked offerings, private investments in public equity, or PIPEs, and private placements. The Company’s strategic advisory services include general strategic advice and transaction specific advice regarding mergers and acquisitions, divestitures, spin-offs, privatizations, special committee assignments and takeover defenses.

The Company provides two principal categories of services within its brokerage operations: institutional brokerage, which comprises institutional sales, sales trading and trading and private client services. The Company provides equity and convertible debt securities sales and trading services to more than 500 institutional investor accounts, including many of the world’s leading mutual fund families.

The Company’s research analysts analyze major trends, publish original research on new areas of growth, provide fundamental, company-specific coverage and work with its institutional clients to identify and evaluate public equity investment opportunities.

The Company’s research analysts perform independent research to help its clients understand the dynamics that drive the sectors and companies they cover. The Company’s research analysts analyze major trends, publish original research on new areas of growth, provide fundamental, company-specific coverage and work with its institutional clients to identify and evaluate public equity investment opportunities. The Company’s research analysts provide insightful analysis and commentary on growth companies in the technology, healthcare and consumer sectors, as well as detailed primary research on the most attractive investment opportunities in those sectors.

The Company’s asset management divisions are divided into two principal units: private equity and distribution management. The Company manages three groups of investment funds in its private equity group. Distribution management actively manages securities distributions for private equity and venture capital fund investors.

Net revenues for the six months ended June 30, 2005 were $119.0 million, compared to net revenues of $159.0 million for the six months ended June 30, 2004.

Total expenses for the six months ended June 30, 2005 were $130.0 million, compared to total expenses of $136.4 million for the six months ended June 30, 2004.