SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

July 9, 2019 Date of report (Date of earliest event reported)

PIPER JAFFRAY COMPANIES (Exact Name of Registrant as Specified in its Charter)

Delaware 1-31720 30-0168701 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

800 Nicollet Mall, Suite 1000 , 55402 (Address of Principal Executive Offices) (Zip Code)

(612) 303-6000 (Registrant’s Telephone Number, Including Area Code)

Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2): o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered Common , par value $0.01 per share PJC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 7.01. Regulation FD Disclosure.

On July 9, 2019, Piper Jaffray Companies (the “Company”) issued a press release announcing that the Company had entered into a definitive agreement pursuant to which, on the terms and subject to the terms set forth therein, the Company will acquire SOP Holdings, LLC and its subsidiaries, including Sandler O’Neill & Partners, L.P. (collectively, “Sandler O’Neill”). The Company and Sandler O’Neill will host a joint conference call and webcast on July 9, 2019 at 8:00 a.m. Central time regarding the proposed transaction during which the management teams of the Company and Sandler O’Neill will discuss a presentation to analysts and investors. Copies of the press release and the investor presentation are furnished hereto as Exhibit 99.1 and Exhibit 99.2, respectively.

The information contained in this Item 7.01, Exhibit 99.1 and Exhibit 99.2 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under Section 18 of the Exchange Act. Furthermore, the information contained in this Item 7.01, Exhibit 99.1 and Exhibit 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release, dated July 9, 2019.

99.2 Investor Presentation, dated July 9, 2019.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PIPER JAFFRAY COMPANIES

Date: July 9, 2019 By /s/ John W. Geelan John W. Geelan General Counsel and Secretary

3 Exhibit 99.1

Piper Jaffray Companies 800 Nicollet Mall, Suite 1000 Minneapolis, MN 55402

CONTACT

Piper Jaffray Pamela Steensland Tel: 612 303-8185 [email protected]

Sandler O’Neill Nick Lawler Tel: 212 466-8071 [email protected]

F O R I M M E D I A T E R E L E A S E

Piper Jaffray and Sandler O’Neill Announce Merger; Combined Firm to be Named

Merger Adds the Leading Firm to the Growing Piper Jaffray Organization

Minneapolis and New York, July 9, 2019 — Piper Jaffray Companies (NYSE: PJC) and Sandler O’Neill + Partners, L.P. today announced they have entered into a definitive merger agreement. The combined company will be named Piper Sandler Companies and will bring together the leading investment banking firm focused on the financial services industry with the growing Piper Jaffray investment banking platform. The combination accelerates Piper Jaffray’s goal of prioritizing and building its M&A advisory business, adds a differentiated fixed income business and significantly expands the breadth and depth of the firm’s equity research, and sales and trading franchise.

Under the terms of the merger agreement, Piper Jaffray will acquire 100% of the equity and partnership interests in Sandler O’Neill. The transaction consideration will total $485 million, which is based on $100 million of tangible book value on the Sandler O’Neill balance sheet delivered at the time of closing. Piper Jaffray will pay $350 million in cash to Sandler O’Neill equity holders at the time of closing; and $135 million in restricted consideration, primarily in restricted stock of Piper Jaffray Companies, to Sandler O’Neill employee partners. In addition, Piper Jaffray agreed to provide $115 million in long-term retention incentives, primarily in restricted stock of Piper Jaffray Companies, to Sandler O’Neill employees. All Sandler O’Neill partners have entered into employment agreements in connection with the transaction.

Transaction Highlights

· 2018 pro forma combined advisory services revenues of $573 million · 2018 pro forma combined investment banking revenues of $839 million · Nearly doubles revenues for the Piper Jaffray fixed income business · Expected to be over 10% accretive to Non-GAAP EPS in 2020 · Increases Piper Jaffray operating margin, ROE and employee productivity metrics · Creates platform with leading middle-market advisory practices in multiple industry sectors

Following the merger, Jimmy Dunne, senior managing principal at Sandler O’Neill, will be named vice chairman of Piper Sandler and senior managing principal of Piper Sandler’s financial services business. Dunne will continue to focus on exactly the same work that he has been doing for the past several years, providing guidance and strategic advice to clients on M&A deals and other transactions. Jon Doyle, senior managing principal at Sandler O’Neill, will lead Piper Sandler’s financial services business line and all investment banking, capital markets, fixed income and equities resources dedicated to the financial services industry will report to him. Doyle will be named vice chairman, senior managing principal and head of the financial services group of Piper Sandler. Doyle will also join the board of directors of Piper Sandler Companies, as well as the firm’s leadership team. Existing Piper Jaffray investment banking, capital markets, fixed income and equities personnel dedicated to the financial services sector will be combined with the Sandler O’Neill team.

“Transactions in investment banking are always about the people and culture. We have a long history with Sandler O’Neill. We admire the quality of their professionals, the business they have built and the culture of the firm which is based on many values we share,” said Chad Abraham, chief executive officer of Piper Jaffray. “Piper Jaffray is very focused on competing in market sectors where we can be a market leader and leverage our specific expertise. With Sandler O’Neill, we start with the market leader and could not be positioned better to compete in the financial services sector over time. This transaction strengthens, diversifies and accelerates the growth of the Piper Jaffray investment banking, capital markets and institutional distribution businesses.”

“We are excited to combine with Piper Jaffray and build on the strength of both of our businesses,” said Jimmy Dunne. “We truly believe this is the best fit and best opportunity for Sandler O’Neill and our clients. I’m extremely proud of what we have built over the past 30 years and thrilled to have found a partner that shares our passion for the business. I’m committed to the future of the firm and looking forward to all we can accomplish together for our clients.”

“I’m excited to be leading the expanded financial services practice at Piper Sandler and joining the board of directors,” said Jon Doyle. “We believe, in partnership, we will leverage our talent and

expertise to enhance our combined capabilities. With Piper Jaffray’s scale and our shared vision, we look forward to growing our business for the future.”

Founded in 1988, Sandler O’Neill is the leading investment banking firm focused on the financial services industry. Sandler O’Neill has advised on more financial services M&A transactions than any other investment every year since 2012. In that timeframe, Sandler O’Neill has advised clients on 498 financial services M&A transactions with an aggregate deal value of $124 billion. (1) Sandler O’Neill also ranks #1 in capital raising for financial institutions since 2012, raising more than $100 billion in equity and debt capital for its clients.(2) Sandler O’Neill brings more than 300 professionals to the combined company, with 85% of these professionals serving in client-facing positions. Over 90% of Sandler O’Neill partners have been with the firm for over 10 years.

The new Piper Sandler platform will have industry leading advisory practices in financial services, healthcare and energy with growing franchises in consumer, diversified industrials and technology. Together, the capital markets business will provide clients with tailored offering structures and present a range of equity and debt financing options to help fuel growth. The combined fixed income business of Piper Sandler will be an advisory-first business model, focused on providing clients with balance sheet management, portfolio analytics and municipal expertise. The joined equity brokerage platform will be among the broadest and largest of any middle market investment bank and positioned to provide unique insights, execution expertise and creative financing solutions across all of the firm’s industry groups.

The transaction is expected to close in January 2020 and is subject to obtaining required regulatory approvals and other customary closing conditions.

Piper Jaffray was advised by its wholly owned subsidiary, Piper Jaffray & Co., and was represented by Sullivan & Cromwell LLP. JMP Securities rendered a fairness opinion to the board of directors of Piper Jaffray Companies. Sandler O’Neill was represented by Wachtell, Lipton, Rosen & Katz.

Conference Call Piper Jaffray will hold a conference call at 9 a.m. ET (8 a.m. CT) today, July 9, 2019. Chad Abraham, chief executive officer of Piper Jaffray; Jimmy Dunne and Jon Doyle, senior managing principals of

(1) Source: S&P Global Market Intelligence, 1/1/2012 — 12/31/2018. Includes transactions with announced deal values. (2) Source: S&P Global Market Intelligence, 1/1/2012 — 12/31/2018. Full deal value credited to underwriter.

Sandler O’Neill; and Tim Carter, chief financial officer of Piper Jaffray, will review the announced transaction. Following the review, there will be a question and answer session.

The call can be accessed by dialing 888 810-0209 (domestic) or 706 902-1361 (international) and referencing reservation number: 3172768. Those who wish to view the accompanying presentation slides can join the webcast via the transaction page on Piper Jaffray’s website at www.piperjaffray.com/pipersandler. Participants should dial in at least 15 minutes prior to the call time.

A replay of the conference call will be available for thirty days beginning at approximately noon ET on July 9, 2019 by calling 855 859-2056 and referencing reservation number: 3172768. The webcast replay and presentation slides will also be available on the Company’s website at www.piperjaffray.com/pipersandler.

About Piper Jaffray Piper Jaffray is a leading investment bank and institutional securities firm driven to help clients Realize the Power of Partnership®. Through a distinct combination of candid counsel, focused expertise and empowered employees, we deliver insight and impact to each and every relationship. Our proven advisory teams combine deep product and sector expertise with ready access to global capital. Founded in 1895, the firm is headquartered in Minneapolis with offices across the United States and in , Aberdeen and Hong Kong. www.piperjaffray.com

About Sandler O’Neill + Partners, L.P. Sandler O’Neill is a full-service investment banking firm dedicated to providing comprehensive, innovative advisory and transaction execution services to the financial industry. The firm specializes in strategic business planning, , capital markets, mutual to stock conversions, investment portfolio and interest rate risk management, fixed income securities transactions, and mortgage finance restructurings.

Sandler O’Neill also is a market maker in hundreds of financial and publishes equity research focused on selected and thrifts, insurance companies, investment banks, asset managers, specialty finance companies, e-finance companies, real estate investment trusts, and financial technology companies. For additional information about the firm, please visit the website at www.sandleroneill.com.

Cautionary Note Regarding Forward-Looking Information This announcement contains forward-looking statements. Statements that are not historical or current facts, including statements

about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, the future prospects and growth of the Company. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including the following: (1) the transaction described in this announcement is subject to regulatory approval and other closing conditions and may not close on the expected timing or at all; (2) the costs or difficulties relating to the combination of the businesses may be greater than expected and may adversely affect our results of operations and financial condition and our ability to realize anticipated synergies from the transaction; (3) the expected benefits of the transaction, including the future prospects of our investment banking, fixed income, equity research, and sales and trading businesses may take longer than anticipated to achieve and may not be achieved in their entirety or at all, and will in part depend on the ability of the Company to retain and hire key personnel and maintain relationships with its clients; (4) developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, the business and profitability of the Company generally and of its investment banking business specifically; (5) the transaction increases the Company’s exposure to the financial services industry; (6) there may be potentially adverse reactions or changes to client, regulatory, business or employee relationships, including as a result of the announcement or completion of the transaction, (7) the failure to obtain financing for the transaction consistent with our expectations or at all could adversely impact the Company and the expected benefits of the transaction and (8) other factors identified under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2018, and updated in our subsequent reports filed with the SEC. These reports are available at www.piperjaffray.com or www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and institutional securities firm driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through five separate investment advisory affiliates —U.S. Securities and Exchange Commission (SEC) registered Advisory Research, Inc., Piper Jaffray LLC, PJC Capital Partners LLC and Piper Jaffray & Co., and Guernsey-based Parallel General Partners Limited, authorized and regulated by the Guernsey Financial Services Commission.

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© 2019 Piper Jaffray Companies. 800 Nicollet Mall, Suite 1000, Minneapolis, Minnesota 55402-7036

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P IP E R JA F F R A Y C O MP A N IE S A N D S A N D L E R O ’N E IL L + P A R T N E R S Merg er d etails P ip er Jafy C o m p an ies to acq u ire 1 0 0 % o f S an d ler O ’N eil + P artn ers Merg ed co m p an y w bil e n am ed P ip er S an d ler C o m p an ies, co m b in in g tw o tru sted an d estab lish ed firm ws ith m atch in g clien t-cen tric u ltu res B rin g s to g eth er th e lad in g in v estm en bt an k in g firm fo cu sed o n th e fin an cial serv ices n d u stry w ith th e g ro w in g in v estm en t b an k in g p latfo rm o f P ip er Jafy A celrats P ip er Jafy ’s g o oal f p rio ritzn g an d b u ild in g th e M& A ad v iso ry b u sin es, an d ad d s tren g th in cap ital rsn g an d ad ifern tiaed fix ed in co m e b u sin es w h ile n h an cin g eq u ites E x p ectd to clo se in Jan u ary 2 0 2 0 ; su b ject o cu sto m ary clo sin g co n d ito n s an d reg u lato ry ap p ro v als T o tal o f $ 4 8 5 m ilo n (in clu d es $ 1 0 0 m ilo n o f tan g ib le b o o k v alu e) $ 3 5 0 m ilo n o f u p fro n t cash co n sid eratio n w, h ich in clu d es $ 1 0 0 m ilo n o f T B V , to eq u ity h o ld ers $ 1 3 5 m ilo n o resticdf co n sid eratio n to em p lo y e p artn ers, p rim arily in resticd sto ck o f P JC C O N S ID E R A T IO N T o tal o f $ 1 1 5 m ilo n A d d ito n al retn tio n to S an d Oler ’N eil p artn ers an d o th er m p lo y es, p rim arily in resticd sto ck o f P JC R E T E N T IO N P L A N E x p ectd to ad d ap p ro x im ately $ 3 0 0 M o f an n u al rev en u Aes cretiv e to 2 0 2 0 o p eratin g m arg in , R O E , E P S an d em p lo y e p ro d u ctiv ity m etrics P ro v id es co n tin u ed o p p o rtu n ites o in v est an d g ro w th e p latfo rm F IN A N C IA L IMP A C T T R A N S A C T IO N O V E R V IE W

C o m p lem en cuts ren t fran ch ise b y ad d in g $ 2 2 5 M+ o f an n u al in v estm en t b an k in g rev en u es fro m fin an cial serv ices n d u stry In creas ln d d iv ersity acro s in v estm en bt an k in g in d u stry secto rs T h e lad in g fin an cial serv ices n v estm en t b an k w ith ap p ro x im ately $ 3 0 0 M o f an n u al rev en u es A d d s alrg e, d u rab le, m ark et-lad in g fran ch ise to o u r p latfo rm D istn ctiv e clin t-cen tric, p artn ersh ip -fo cu sed cu ltu res w ith m ean in g fu l o p p o rtu n ites o co lab o rate co s in d u strie an d p ro d u cts E n rich es firm cu ltu re, d ep en s relatio n sh ip s an d stren g th en leads ersh ip C reats o n e o f th e larg est U .S . m id d le-m ark et ad v iso ry b u sin wes ith n early $ 6 0 0 M o f an n u al p ro fo rm a co m b in ed rev en u es S ig n ifcan tly elv ates d v iso ry p ractie w ith in th e m id d le m ark et N early d o u b les cu ren fixt ed in co m e b u sin es b y ad d in g alrg e, ad v iso ry -b ased , d ifern tiaed b u sin es w h ich b ro ad en s o u r p ro d u ct an d clien t m ix A d d s an ad v ice-d riv en m, ark et-lad in g fix ed in co m e b u sin es A d d s m o re th an 2 0 0 sto ck s, ig n ifcan tly ex p an d in g cu ren t fin an cial serv ices o v erag e an d eq u ity d istrb u tio n cap acity E n h an ces q u ity b u sin es th ro u g h ex p an d ed resach co v erag e A d d ms a ark et-lad in g , b o o k ru n fran ch ise w ith b ro ad p ro d u ct ap ab iltes, x p ectd to in creas n n u al rev en u es b y 5 0 % + D iv ersif an d scalep ital m ark franets ch ise C O MB IN E S T H E L E A D IN G F IN A N C IA L S E R V IC E S IN V E S T ME N T B A N K WIT H T H E G R O WIN G P IP E R JA F F R A Y P L A T F O R M S traeg ic rato n ale

S o u rce: S & P G lo b al Mark et In telig en ce D o es n o t co m b in e th e rsu lts o f ad v iso rs w h ich h av e m erg ed u n til h e d ate su ch m erg er w as co m p letd 1 In clu d es tran sactio n ws ith an n o u n ced d eal v alu es; taicrflJn u ary 1 , 2 0 1 2 th ro u g h Ju n 1e 5 , 2 0 1 9 2 F u l d eal v alu e crd ited to u n d erw rite Merg ers an d A cq u isto n Ss ales, T rad in g , an d R esarch C ap ital R aisn g F in an cial serv ices M& A ad v iso r sin ce 2 0 1 2 – b ased o n n u m b er o f d eals N o . 1 F in an cial serv capies ital o ferin g s m an ag ed sin ce 2 0 1 2 F in an cial serv ices o m p an ies co v erd b y eq u ity resach 3 0 0 + A n n o u n ced fin an cial serv ices M& A tran sactio n s in 2ce 0 1 2 4 9 8 A g g reg ate n n o u n ced M& A tran sactio n v alu e sin ce 2 0 1 2 1 $ 1 2 4 B E q u ity cap ital rsed fo r fin an cial serv ices o m p an ies n ce 2 0 1 2 2 $ 7 1 B D eb capt ital rsed fo r fin an cial serv ices o m p an ies n ce 2 0 1 2 2 $ 4 1 B S to ck ms a ark et m ak er 4 0 0 + B an k s co v erd b y fix ed in co m e 1 0 0 0 + T H E L E A D IN G F IN A N C IA L S E R V IC E S IN V E S T ME N T B A N K S an d ler O ’N eil + P artn ers N o . 1 F u l serv ince v estm en t b an k in g firm d ed icated to p ro v id in g co m p reh en siv e ad v iso ry an d tran sactio n ex ecu tio n serv ices to ab ro ad ran g e o f in an cial n stiu tio n s an d in v esto rs S in g u lar fo cu s o n fin an cial serv ices o m p an ies E x cep tio n al in d u stry k n o w led g e O u tsan d in g cap ital m ark ets an d tran sactio n al ex p Certis lien t-firs ap p ro ach w ith rep u taio n fo r in teg rity an d tran sp aren cy S m al-firm clien t serv ice w ith larg e-firm cap ab iltes Y ear F o u n d ed 1 9 8 8 H ead q u artes N ew Y o rk O w n ersh ip P riv ate P artn ersh ip E m p lo y es 3 0 0 O fices 6

$ in m ilo n Ms & A /A d v iso ry S erv ices F in an cin g F ix ed In co m e E q u ity C o m m iso n s S ix co n secu tiv e y ears o f rev en u e g ro w th d riv en b y in creasin g m ark et sh Aare d v iso ry -led fran ch ise w h ich h as m o re th an d o u b led sin ce 2 0 1 1 S tro n g cap mital ark ets o rig in atio n b u sin es th at d o es n o t rely o n th e b aln ce sh Aet d v iso ry -b ased fix ed in co m e b u sin es L ead in g fran ch ise w ith atrciv fine an cial p ro file S A N D L E R O ’N E IL L R E V E N U E S B Y B U S IN E S S A C T IV IT Y S A N D L E R O ’N E IL L + P A R T N E R S $ 6 4 $ 8 2 $ 8 0 $ 1 0 0 $ 1 1 6 $ 1 5 4 $ 1 4 8 $ 1 7 9 $ 9 5 $ 4 2 $ 6 8 $ 7 0 $ 7 5 $ 5 2 $ 9 9 $ 7 0 $ 1 0 1 $ 1 0 0 $ 9 3 $ 7 3 $ 7 5 $ 7 5 $ 7 2 $ 7 7 $ 2 6 $ 2 1 $ 1 9 $ 1 9 $ 1 9 $ 1 9 $ 1 6 $ 1 7 $ 2 8 5 $ 2 4 5 $ 2 6 0 $ 2 6 2 $ 2 8 4 $ 3 0 0 $ 3 3 6 $ 3 4 3 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8

S o u rce: S & P G lo b al Mark et In telig en ce F in an cial serv ices n co m p ase b an k s & th rifts, n su ran ce, astm an ag em en t, secu rites v ices, p ecialty fin an fince, an cial teh n o lo g y & R E IT s In clu d es alU .S . fin an cial serv tranices sactio n s an n o u n ced sin ce Jan u ary 1 , 2 0 0 2 w ith d isclo sed d eal v alu e an d fin a an cial d v iso r; an k in g s ex clu d e trm in ated tran sactio n s an d self-ad v iso ry ro les R an k in g s ex clu d e trm in ated tran sactio n s an d self-ad v iso ry ro les; D o nes o t co m b in e th e rsu lts o f ad v iso rs w h ich h av e m erg ed u n til h e d ate su ch m erg er w as co m p letd O n e o f th e m o st aciv e fin an cial d v iso rs, an k in g N o . 1 ev ery y ear sin ce 2 0 1 1 b ased o n n u m b er o f d eals d v ised fo r fin an servcial ices, rg ard les o f m ark et cy cle o r en v iro n m en t S A N D L E R O ’N E IL L F IN A N C IA L S E R V IC E S M& A E X P E R T IS E # o f D eals & R an k in g Mark et lad ersh ip in fin an cial serv ices M& A S A N D L E R O ’N E IL L + P A R T N E R S 2 4 3 1 3 9 4 1 5 7 4 8 2 5 1 5 2 2 2 3 3 9 4 9 5 7 6 4 4 5 5 3 6 9 # 3 # 2 # 2 # 2 # 1 # 1 # 1 # 2 # 2 # 1 # 1 # 1 # 1 # 1 # 1 # 1 # 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8

S o u rce: S & P G lo b al Mark et In telig en ce In clu d es alb an k & th rift co m m o n eq u ity raiseb etw en Jan u ary 1 , 2 0 0 9 an d Ju n e 5 , 2 0 1 9 F u l cred it o lead an d co -m an ag ers D o es n o t co m b in e th e rsu lts o f ad v iso rs th at h av e m erg ed u n til h e d ate su ch m erg er w as co m p letd T o p ran k ed in co m m o n eq u ity raisn g fo r b an k ans d th rifts o v er th e last1 0 y ears Mark et lad ersh ip in fin an incal stiu tio n s cap ital rsn g 1 S an d ler O 'N eil + P artn ers 2 0 6 2 K Bef, ru y et & Wo o d s 1 9 6 3 R ay m o n d Jam es & A so ciates, In c. 8 8 4 J.P M. o rg an S ecu rites L L C 8 7 5 G o ld m an S ach s & C o . L L C 5 7 6 B an k o f A m Merica eril L y n ch 5 4 7 Jan n ey Mo n tg o m ery S co t L L C 5 2 8 S tep h en s In c. 4 8 9 Mo rg an S tan ley 4 7 1 0 S tifel 4 5 1 1 R B C C ap ital Mark ets, L L C 4 3 1 2 IN T L F C S to n e F in an Incial c. 3 5 1 3 B arcly s C ap ital In c. 3 2 1 4 D .A . D av id so n & C o . 3 1 1 5 C red Sit u ise (U S A ), In c. 3 0 1 6 B . R iley F B R , In c. 2 9 1 8 D eu tsch e B an k S ecu Inrites c. 2 7 1 8 C itg ro u p G lo b al Mark ets In c. 2 7 1 9 U B S In v estm en t B an k 2 6 2 0 R o b ert W. B aird & C o . In co rp o rated 2 5 1 Mo rg an S tan ley $ 8 4 .5 2 J.P M. o rg an S ecu rites L L C $ 7 2 .8 3 S an d ler O 'N eil + P artn ers $ 6 8 .9 4 K Bef, ru y et & Wo o d s $ 6 7 .4 5 D eu tsch e B an k S ecu rites In c. $ 6 1 .8 6 G o ld m an S ach s & C o . L L C $ 6 1 .0 7 R B C C ap ital Mark ets, L L C $ 5 9 .0 8 Wilam s C ap Gital ro u p , L .P . $ 5 5 .2 9 B arcly s C ap ital In c. $ 5 1 .7 1 1 B lay lo ck V an , L L C $ 5 0 .8 1 1 L o o p C ap ital Mark ets L L C $ 5 0 .8 1 2 C red it S u ise (U S A ), In c. $ 4 6 .1 1 3 C itg ro u p G lo b al Mark ets In c. $ 4 5 .0 1 4 Wels F arg o S ecu rites, L L C $ 4 4 .8 1 5 S am u el A . R am irez & C o m p an y , In c. $ 4 0 .5 1 6 Mu riel S ieb ert & C o ., In $c. 4 0 .3 1 7 C astleO ak S ecu rites, L .P . $ 3 8 .5 1 8 B an k o f A m erica Meril L y n ch $ 3 8 .0 1 9 U B S In v estm en t B an k $ 3 8 .0 2 0 S tifel $ 3 3 .3 R an k b y N u m b er o f D eals R an k b y A g g reg ate D eal V alu e S A N D L E R O ’N E IL L + P A R T N E R S $ in b ilo n s

S o u rce: S & P G lo b al Mark et In telig en ce an d F D IC ; d at so f D ecm b er 3 1 , 2 0 1 8 # o f D Deals eals /# o f B an k s (% ) S tab le b an k o p eratin g en v iro n m en t w ith fav o rab Mle & A o u tlo o k L arg e, co n siten t m ark et w ith an av erag e o f 2 5 0 + d eals p yer ear S ig n ifcan t m ark et w ith o v er 5 ,0 0 0 b an k s co n siten tly co n so lid atin g rate o f ap p ro x im ately 4 % p er y ear L o n g -term tren d s arefv o rab le fo cor n tin u ed co n so lid atio n (e.g ., risn g tech n o lo g y an d co m p lian ce o hst, isto ricaly h ig h cap ital, m p ro v ed b an k sto ck v alu atio n s, atrciv eco n o m ics p ro v id ed b y M& A ) S an d ler h as co n tin u aly so u g h t o b ro ad en fin ts an cial serv ices o v erag e b y b u ild in g ad d ito n al sp ecialts n in su ran spce, ecialty fin an ce, astm an ag em en t, realsn d fin an cial teh n o lo g y # o Df eals D eals /# o f B an k s D u rab le an d co n siten t m ark et n v iro n m en t N U MB E R O F D E A L S P E R Y E A R /N U MB E R O F B A N K S S A N D L E R O ’N E IL L + P A R T N E R S 0 .0 % 1 .0 % 2 .0 % 3 .0 % 4 .0 % 5 .0 % 0 1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8

1 2 0 1 8 P ip Jafrye stan d alo n e in v estm en t b an k in g rev en u es in clu d e b o th co rp o adrte v iso ry an d cap ital m ark ets rv en u es (x clu d es p u b lic fn an ce) 2 2 0 1 8 P ro fo rm a in v estm en t b an k in g rev en u es co m b in es P ip er Jafy stan d alo n ine v estm en t b an k in g rev en u es w ith S an d ler O ’N eil M& A /A d v iso ry S erv revics en u es o f $ 1 7 9 M an d F in an cin g rev en u es o f $ 7 0 M 5 1 % in creas in rev en u Ines creas ln d d iv ersity acro s in d u stry secto rs S T R A T E G IC R A T IO N A L E E n h an ces ad v iso ry an d cap ital m ark ets in v estm en t b an k in g p latfo rm T h mre ark et-lad in g fran ch ise n sig n ifcan t in d u stry secto rs (i.efn an servcial ices, h ealth care, n erg y ) F iv e scald in d u stry team s In creas m an ag in g d irecto r h ead co u n t b y ap p ro x im ately 3 9 % an d rev en u e b y 5 1 % H ealth care E n erg y C o n su m er D iv ersifd In d u strial T MT & B u sin es S erv ices F in an Scial erv ices 2 0 1 8 P ip er Jafy S tan d alo n e In v estm en t B an k in g R ev en u es1 b y S ecto 2r 0 1 8 P ro F o rm a In v estm en t B an k in g R ev en u es2 b y S ecto r $ 4 9 3 M R ev en u e 9 0 MD $s 7 4 2 M R ev en u e 1 2 5 + MD s

C A G R calu is lated o v er th e 8 -y ear p erio d fro m 2 0 1 1 to 2 0 1 8 p ro fo rm a, w h ich rep thlaces e 2 0 1 8 P ip er Jafy stan d alo n e y ear 1 P ro fo rm a co m b in es 2 0 1 8 P ip Jafrye stan d alo n e rv en u es w ith S an d ler O ’N eil rv en u es 2 R efr to p ag e A -1 o f th e A p p en d ix fo r aeco n cilato n o f P ip er Jafy stan d alo n e ad ju sted n revt en u es to U .S . G A A P n et rv en u es E x p an sio n o f ad v iso ry p latfo rm to d riv earn in g s an d lay th e fo u n d atio n fo r fu tu re g ro w th S tro n g , su stain ab le rv en u ge ro w th ex p ectd fro m h ig h m arg in ad v iso ry serv ices R ed ep lo y in g cap ital o b u sin es w ith h ig h er tu rn s E lev ates d v iso ry p latfo rm w ith in th e m id d mle ark et $ in m ilo n s $ in m ilo n s A d v iso ry S erv ices R ev en u es A d v iso ry as% o f A d ju sted N et R ev en u es A d ju sted N et R ev en u es C A G R : 2 9 % C A G R : 1 3 % P ip Jafrye S tan d alo n e P ip er Jafy S tan d alo n e P ro F o rm a1 P ro F o rm a1 A D V IS O R Y S E R V IC E S R E V E N U E S A D JU S T E D N E T R E V E N U E S 2 S T R A T E G IC R A T IO N A L E $ 4 3 0 $ 4 8 5 $ 5 1 6 $ 6 3 2 $ 6 6 3 $ 7 3 6 $ 8 7 0 $ 7 8 1 $ 1 ,1 2 4 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 8 $ 7 4 $ 8 6 $ 8 3 $ 1 9 8 $ 2 0 9 $ 3 0 5 $ 4 4 3 $ 3 9 4 $ 5 7 3 1 7 % 1 8 % 1 6 % 3 1 % 3 2 % 4 1 % 5 1 % 5 0 % 5 1 % 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 8

1 2 0 1 8 P ip Jafrye stan d alo n e cap ital m ark ets rv en u es rflctq u ity fin an cin g rev en u 2es 2 0 1 8 P ro fo rm a cp ital m ark ets rv en u es co m b in es P ip er Jafy stan d alo n cape ital m ark ets rv en u es w ith S an d ler O ’N eil rv en u es fro m fin an cin g o f $ 7 0 M3 T ran sactio n s an d v alu e b o th in clu d e co m m u n ity b an k , sp ecialty fin an trance sactio n s, B D C an d o th er n o n -b an k tran sactio n s; S o u rce: S an d ler O ’N Seil y n d icate D esk & B lo o m b erg , d at so f Ju n e 5 , 2 0 1 9 4 S o u rce: B lo o m b erg d, at so f Ju n e 5 , 2 0 1 9 5 7 % in creas in p latfo rm E lev ates cp ital rsn g p latfo rm w ith in th e m id d le m ark et C o m b in atio n ad d s ab o o k ru n fran ch ise w ith b ro ad p ro d u ct ap ab iltes an d d o m in an t m ark et sh are S an d ler h as b o o k ru n 1 9 9 tran sactio n s to talin g $ 1 1 .2 b ilo n in cap ital rsed sin ce 2 0 1 4 3 S an d ler h mas an ag ed m o re su b o rd in ated d eb t o r sen io r n o te o ferin g s fo r b an k s u n d er $ 3 5 b ilo n in aseth an an y o th er in v estm en t b an k sin ce 2 0 1 4 4 B ro ad eq u ity an d d eb t p ro d u ct ap ab iltes S u p erio r ex ecu tio n w ith stro n g d istrb u tio n an d resach 2 0 1 8 P ip er Jafy S tan d alo n e C ap ital Mark ets R ev en u es1 b y S ecto 2r 0 1 8 P ro F o rm a C ap ital Mark ets R ev en u es2 b y S ecto r H ealth care O th er F in an Scial erv ices $ 1 2 2 M R ev en u e $ 1 9 2 M R ev en u e S T R A T E G IC R A T IO N A L E

D ep p en etraio n w ith b an k s – co v erin g 1 0 0 0 + b an k s D ifern tiaed , ad v iso ry -b ased m o d el th at lev erag es th e cap ab iltes o f th e w h o le firm an d d riv es in v estm en bt an k in g rev en u e S tro n g an aly tics w ith ah o listc ap p ro ach to b aln ce sh met an ag em en t w ith co m p reh en siv e m o d elin g cap ab iltes fo r aset,lib aniltes d in ters ad eriv ativ es B ro ad su ite o f p ro d u cts w ith d ep ex p ertis n m o rtg ag e-b ack ed secu rites an d lo an s H ig h p ro d u ctiv ity w ith C -su ite an d b o ard -lev el ratio n sh ip s C o m b in atio n A trib u tes S ig n ifcan tly in scale wr ith n early 2 X rev en u es C o m p lem en tary p ro d u ct su ite an d clien Imt se p ro v es rik ad ju sted cap ital efcn cy P ro v id es b ro ad er d istrb u tio n to o u r m u n icp al n ew isu e an d seco n d ary fix ed in co m e b u sin es A d d s an ad v ice-d riv en , m ark et-lad in g fix ed in co m e b u sin es S an d ler O ’N eil fx ed in co m e g ro u p S T R A T E G IC R A T IO N A L E

1 P ip er Jafy stan d alo n e rsach co v erag e rflctsu ren t so ck s u n d er co v erag e 2 P ro fo rm a resch co v erag e co m b in es P ip er Jafy stan d alo n e rsach co v erag we ith ap p ro x im ately 2 0 0 sto ck s u n d er co v erag e fro m S an d ler O ’N eil 3 1 % in creas in co v erag e E n h an ces q u ites b u sin es th ro u g h ex p an d ed reso u Erces x p an d s reach an d aco u n t co v erag e A d d s ap p ro x im ately 2 0 0 sto ck s u n d coer v erag e – in creasin g b an k co v erag e w h ile ad d in g co v erag e in in realst, su ran ce an d o th er fin an cial serv ices to rs R ep resn ts o n e o f th e larg dest istrb u tio n fran ch ise o f an y m id -tier b ro k er w ith m ark et-lad in g resach trad, in g , an d cap ital m ark ets cap ab iltes H ealth care E n erg y C o n su m Iner d u strial & B u sin es S erv ices T ech n o lo g y F in an cial S erv ices P ip Jafrye S tan d alo n e R esarch C o v erag e1 P ro F o rm a R esarch C o v erag e2 8 5 0 S to ck 6s 5 0 S to ck s S T R A T E G IC R A T IO N A L E

Jim m y D u n n we il co n tin u e to fo cu s o n ex actly th e sam e w o rk h e h as b en d o in g fo r th pe ast ev eral y ears, p ro v id in g g u id an ce an d straeg ic ad v ice to clien ts o n M& A d eals n d o th er tan sactio n s D u n n e w il b e n am ed v ice h airm an o f P ip er S an d ler C o m p an ies, an d sen io r m an ag in g p rin cip al o f th e P ip er S an d ler fin an cial serv ices b u sin es Jo n D o y le w il ead th e P ip er S an d ler fin an cial serv ices b u sin es lin e, an d alin v estm en t b an k in g , cap ital m ark ets, fix ed in co m e an d eq u ites ro u rces d ed icated to th e fin an cial serv ices n d u stry secto r w il rep o rt o Jo n D o y le w il b e n am ed v ice h airm an o f P ip er S an d Cler o m p an ies, an d sen io r m an ag in g p rin cip al o f th e P ip er S an d ler fin an servcial ices b u sin es D o y le w il jo in th e b o ard o f d irecto rs o f P ip er S an d Cler o m p an ies an d th e firm ’s 1 1 -p erso n L ead ersh ip T eam A seco n d in d iv id u al, to b ne am ed , w il b e ad d ed to th e b o ard o f d irecto rs o f P ip er S an d ler C o m p an ies n th e firstq u arte o f 2 0 2 1 asp er th e m erg er ag rem en t S u b stan tial ren tiv ine cen tiv es in th e fo rm o f resticd co n sid eratio n , p rim arily resticd sto ck , w il b e isu ed to S an d ler O ’N eil m p lo y es an d v est o v er v ario u terms s u p to fiv e y ears b ased o n co n tin u ed em p lo y m en t K ey em p lo y es, in clu d in g al S an d ler p artn ers, h av e sig n ed em p lo y m en t ag rem en ts S an d ler O ’N emil p lo y es arx p ectd to co lectiv ely o w n ap p ro x im ately 1 6 % o f P ip er S an d Cler o m p an ies n th e fo rm o f resticd sto ck isu ed astrn sactio n co n sid eratio n an d retn tio n in cen tiv es D ep lo y s ex ces ap ital, n d ex p ectd cash p ro ced fros m th e p en d in g saleo f A d v iso ry R esarch , In c. E x p ectd to ap rise p ro x im ately $ 1 5 0 m ilo n o f d eb t o fin an ce ap o rtio n o f th e cash co n sid eratio n S an d ler O ’N eil F Y 2 0 1 8 rev en u es o f $ 3 4 0 m ilo n ; rev en u es h av ave erag ed $ 2 9 0 m ilo n sin ce 2 0 1 1 N o n -G A A P co m p en satio n ratio isex p ectd to b e u n ch an g ed E x p ectd to b e 1 0 % + acretiv e to n o n -G A A P E P S in 2 0 2 0 A cretiv toe th e firm ’s n o n -G A A P R O E an d o p eratin g m etrics A lth o u g h co st y n erg ies an d rev en u e n h an cem en ts arex p ectd , n o n et sy n erg ies h av e b en asu m ed in th pe ro jectio n s O th er tan sactio n term s an d fin an cial h ig h lig h ts P IP E R JA F F R A Y C O MP A N IE S A N D S A N D L E R O ’N E IL L + P A R T N E R S K E Y P E R S O N N E L A N D MA N A G E ME N T O F F IN A N C IA L S E R V IC E S B U S IN E S S R E T E N T IO N F IN A N C IA L ME T R IC S A N D P R O JE C T IO N S C A P IT A L

In revcas en u e b y 4 4 % an d ad d s ah ig h ly co m p lem en tary , m ark et-lad in g fin an servcial ices n d u stry p latfo rm E n h an ces al,d u rab ilty , an d d iv ersity o f th firme A cretiv e to o p eratin g m arg in , R O E , E P S an d em p lo y e p ro d u ctiv ity m etrics Mean in g fu ly acretiv e acq u isto n G ro w s ad v iso ry b u sin es b y 4 5 % w ith 2 0 1 8 p ro fo rm a d v iso ry serv ices rv en u es o f $ 5 7 3 m ilo n S cales h ig h m arg in , h ig h m u ltip le ad v iso ry b u sin es S h arp en s fo cu s, d ep lo y s ex capes ital n d d riv es h ig h er tu rn s D ep lo y s ex ces ap ital A celrats g ro w th o p p o rtu n ites n alo u r fan ch ise C reats ig n ifcan t o p p o rtu n ity fo cor n tin u ed g ro w th S h areh o ld er v alu e cratio n P IP E R JA F F R A Y C O MP A N IE S A N D S A N D L E R O ’N E IL L + P A R T N E R S

1 -Y ear 3 -Y 5ear -Y ear T O T A L R E T U R N A S O F JU N E 2 8 , 2 0 1 9 1 C M In d ex reflctsK B W C ap Mital ark ets In d ex 1 R ep resn ts o tal sh areh o ld er tu rn fo r th e 1 -Y ear, 3 -Y aner, d 5 -Y ear p erio d s en d in g Ju n e 2 8 , 2 0 1 9 E V R 1 2 9 .1 4 % P JC 1 2 1 .1 2 % H L I 1 1 2 .9 0 % M C 1 0 6 .8 5 % S F 9 7 .8 5 % O P Y 9 3 .0 8 % P JT 8 5 .0 5 % C M In d ex 6 4 .5 1 % S & P 5 0 0 5 0 .7 4 % C O WN 4 7 .1 7 % L A Z 4 6 .7 5 % JE F F 2 4 .9 8 % G H L -3 .6 6 % JMP -1 2 .7 2 % C O WN 2 1 .9 1 % S F 1 2 .8 4 % S & P 5 0 0 9 .8 4 % P JC -0 .9 9 % O P Y -2 .1 9 % C M In d ex -5 .0 6 % H L I -1 1 .2 4 % JE F F -1 3 .7 9 % E V R -1 4 .5 5 % JMP -2 2 .5 4 % P JT -2 4 .4 2 % L A Z -2 5 .3 7 % MC -3 4 .8 0 % G H L -5 1 .4 5 % E V R 7 1 .4 4 % S & P 5 0 0 6 1 .2 2 % C M In d ex 5 9 .7 9 % MC 5 6 .6 7 % P JC 5 3 .4 2 % S F 2 7 .1 7 % O P Y 2 5 .8 8 % C O WN 0 .1 7 % L A Z -8 .1 8 % JE F F -2 0 .6 1 % JMP -2 1 .7 4 % G H L -6 4 .3 5 % H L I N /A P JT N /A T o p p erfo rm in g sto ck o v er m u lti-y ear p erio d s O U R G R O WT H B, U S IN E S S MIX A N D D IS C IP L IN E D U S E O F C A P IT A L D R IV IN G B E S T -IN -C L A S S R E T U R N S P JC S H A R E P R IC E $ 1 0 $ 2 5 $ 4 0 $ 5 5 $ 7 0 $ 8 5 $ 1 0 0 Jan -1 1 Jan -1 2 Jan -1 3 Jan -1 4 Jan -1 5 Jan -1 6 Jan -1 7 Jan -1 8 Jan -1 9

Metrics ao n a p ro fo rm a b asi co m b in in g P ip er Jafy stan d alo n e w ith S an d ler O ’N eil 1 In clu d es 2 0 1 8 P ip er Jafy stan d alo n e ad ju sted n et rv en u es; rfto p ag Ae -1 o f th e A p p en d ix fo r aeco n cilato n o f P ip er Jafy stan d alo n e ad ju sted n et rv en u es to U .S . G A A P n et rv en u es 2 In clu d es 2 0 1 8 P ip er Jafy stan d alo n cashe flo w s; refto p ag e A -2 o f th e A p p en d ix fo r th e co m p o n en ts o f P ip Jafrye stan d alo n e cash flo w s 3 A su m es acq u isto n d eb t o f $ 1 5 0 M; E B IT D A in clu d es 2 0 1 8 P ip er Jafy stan d alo n e E B IT D A ; refto p ag e A -2 o f th Ae p p en d ix fo r th e co m p o n en ts o f P ip er Jafy stan d alo n e E B IT D A P ip er S an d Cler o m p an ies P ro F o rm a A L E A D IN G F IN A N C IA L A D V IS O R Y A N D C A P IT A L MA R K E T S F IR MP IP E R S A N D L E R A L E A D IN G F IN A N C IA L A D V IS O R Y A N D C A P IT A L MA R K E T S F IR M A d ju sted N et R ev en u es1 $ 1 .1 B ilo n In v estm en t B an k in g R ev en u e Mix 7 5 % A d v iso ry S erv ices R ev en u e Mix 5 0 % + T arg etd O p eratin g Marg in 1 7 -1 9 % A n n u al C ash F lo w 2 $ 1 5 0 M+ Y ears E x p ectd to P ay o f A cq u isto n D eb t 2 .0 A d ju sted N et In co m Re etu rn ed T h ro u g h D iv id en d s 3 0 % -5 0 % L ev erag e (D eb t o E B IT D A 3 ) < 1 x

A p p en d ix

T h pis resn taio n in clu d es n o n -G A A P , o r ‘ad ju sted ,’ fin an cial m easu Mres. an ag em en t b eliv es th at p resn tin g resu lts an d m easu res o n an ad ju sted b inas co n ju n ctio n w ith th e co resp o n d in g U .S . G A A P m easu res p ro v id es th e m o mst ean in g fu l b asi fo r co m p ariso n o f itso p eratin g resu lts acro s p erio d s, an d en h an ces th e o v eral u n d erstan d in g o f o u r cu ren t fin an cial p erfo rm an ce b y ex clu d in g certain item s th at m ay n o t b e in d icatv e o f o u r co re o p eratin g resu lts. T h e n o n -G A A P fin an cial m easu res h o u ld b e co n sid erd in ad d ito n to n, o t asu b stiu te fo r, m easu res o f in an cial p erfo rm an ce p rep ared in aco rd an ce w ith U .S . G A A P . N et rv en u es A reco n cilato n o f ad ju sted n revt en u es to U .S . G A A P n et rv en u es: A -1 R eco n cilato n fo r N o n -G A A P F in an Mcial easu res A P P E N D IX F o r th e y ear n d ed D ecm b er 3 1 , ($ in th o u san d s) 2 0 1 8 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2 0 1 2 2 0 1 1 N et rv en u es – U .S . G A A P b asi $ 7 8 4 ,4 4 2 $ 8 7 4 ,9 2 3 $ 7 4 7 ,3 4 9 $ 6 7 2 ,9 1 8 $ 6 4 8 ,1 3 8 $ 5 2 5 ,1 9 5 $ 4 8 8 ,9 5 2 $ 4 3 2 ,0 8 3 A d ju stm en t: R ev en u e rlatd to n o n co n tro lin g in ters (3 ,6 2 1 ) (5 ,3 1 9 (1) 1 ,0 7 0 ) (9 ,8 1 0 ) (1 5 ,6 9 9 ) (8 ,7 9 4 ) (4 ,1 7 4 ) (1 ,7 8 5 ) A d ju sted n et rv en u es $ 7 8 0 ,8 2 1 $ 8 6 9 ,6 0 4 $ 7 3 6 ,2 7 9 $ 6 6 3 ,1 0 8 $ 6 3 2 ,4 3 9 $ 5 1 6 ,4 0 1 $ 4 8 4 ,7 7 8 $ 4 3 0 ,2 9 8

A -2 R eco n cilato n fo r N o n -G A A P F in an cial Measu res A P P E N D IX A n n u al csh flo w s T h foe lo w in g tab le p resn ts h e co m p o n en ts o f stan d alo n e an n u al csh flo w s fo Pr ip er Jafy C o m p an ies fo r th e y ear n d ed D ecm b er 3 1 , 2 0 1 8 : E arn in g s b efo inre ters, ax es, d ep reciato n , an d am o rtizao n ("E B IT D A ") T h foe lo w in g tab le p resn ts h e co m p o n en ts o f stan d alo n e E B IT D A fo r P ip Jafrye C o m p an ies fo r th e y ear n d ed D ecm b er 3 1 , 2 0 1 8 : ($ in th o u san d s) 2 0 1 8 N et in co m e ap p licab le to P ip er Jafy C o m p an ies – U .S . G A A P b asi $ 5 7 ,0 3 6 N o n -cash ad ju stm en ts areflcd o n th e co n so lid ated staem en t o f cash flo w s: D ep reciato n an d am o rtizao n o f ix ed aset8 ,3 5 8 D efrd in co m taxe es (6 5 2 ) S to ck -b ased co m p en satio n 4 4 ,2 8 5 A m o rtizao n o f in tan g ib 1le ast 0 ,4 6 0 A m o rtizao n o f o rg iv ab le o an s 5 ,1 3 8 N o n -cash ad ju stm en ts 6 7 ,5 8 9 L es: tax im p act o f n o n -cash ad ju stm en ts (1 7 ,0 6 0 ) A n n u al csh flo w s – P ip Jafrye stan d alo n e $ 1 0 7 ,5 6 5 ($ in th o u san d s) 2 0 1 8 N et in co m e ap p licab le to P ip er Jafy C o m p an ies – U .S . G A A P b asi $ 5 7 ,0 3 6 A d ju stm en ts fo r in taxers, es, d ep reciato n , an d am o rtizao n asreflctd o n th e co n so lid ated fin an cial stem en ts: L o n g -term fin an cin g ex p en se 5 ,7 9 3 In co m e tax ex p en 1se 9 ,0 4 7 D ep reciato n an d am o rtizao n o f ix ed aset8 ,3 5 8 A m o rtizao n o inf tan g ib le ast1 0 ,4 6 0 S to ck -b ased co m p en satio n 4 4 ,2 8 5 A m o rtizao n o fo rg iv ab le o an s 5 ,1 3 8 A d ju stm en ts fo r in ters, ax es, d ep reciato n , an d am o rtizao n 9 3 ,0 8 1 E B IT D A – P ip er Jafy stan d alo n e $ 1 5 0 ,1 1 7