Lois Quam leaves Piper Jaffray to start incubator

Lois Quam, the former senior UnitedHealth Group executive who joined Piper Jaffray & Co. as its alternative investments chief, has left the investment bank after less than two years on the job.

Quam is launching Tysvar, a business incubator that will help develop start-ups in health care and clean energy and strengthen technology transfer between Minnesota and Norway. The company is named after her grandfather's hometown in Norway.

Quam's exit comes as Piper is struggling to generate deals amid global credit markets weakened by the recession. Under her brief tenure, the company did not make any investments of the type contemplated when she came aboard.

In an interview, Quam said she wished to return to her roots as an entrepreneur -- a role, she said, where she can be the most effective.

"I'm focused on ways to finding solutions to really significant problems and taking those ideas to full potential," Quam said. "Piper does a wonderful job financing companies. I want to bring the green economy to reality in a way that is much broader than financing. I want to focus on areas where I can make the most difference bringing the green economy to scale."

She added: "Simply having cups of coffee will not help me in getting companies to grow."

Both Piper and Quam took pains to say that the split was amicable and that Tysvar and Piper would collaborate on projects.

"Lois has been an important contributor to our ongoing leadership in the clean technology and renewable space," Piper CEO Andrew Duff said in a statement. "We have significantly benefited from her visionary thinking at Piper Jaffray. As Lois builds on her life's work in health care reform and the new green economy, we look forward to partnering in initiatives that foster innovation and growth among leading companies in these important sectors."

Duff declined to say more. A Piper spokesman said the company would not replace Quam.

Quam's departure deals a blow to Piper, which recruited her out of UnitedHealth with much fanfare in 2007 to help the Minneapolis-based investment bank hunt for new investments in health care and clean energy. The position was created specifically for Quam in part because of her international business experience running UnitedHealth's Ovations business, which had a foreign component, as well as her close relationship with AARP.

But Wall Street's collapse in 2008 and the subsequent recession essentially deprived Quam of the tools to do her job: make investments in promising start-ups. In her 20 or so months at Piper, Quam did not launch any funds because, she says, the company lacked the financial resources to do so.

Like all investment banks, Piper struggled to generate revenue as frozen credit markets scared away demand for initial public offerings and wiped out financing for mergers and acquisitions. Last year, revenue at Piper fell 35 percent, to $345 million. The company lost $183 million compared with a profit of $22 million in 2007. Duff has said 2009 also will be difficult.

Quam said she provided Piper with broader strategic advice. She also recruited Doug Cameron, a highly regarded venture capitalist in Silicon Valley and a clean-tech expert, to become Piper's chief science officer.

In an e-mail, Cameron said he will remain at Piper.

"I think it is a great move and opportunity for Lois," Cameron wrote. "Also good for Twin Cities and the state. I will miss Lois, but expect to interact closely with her in her new role. I will stay at Piper with a primary focus on working with clean-tech investment banking. In the past [my job] was 60 percent investment banking and 40 percent alternative investments. With Lois leaving, it will be 80 percent investment banking. I am optimistic."

Quam said Tysvar will help facilitate the transfer of clean technology between Minnesota and Norway, which has a large sovereign wealth fund and expertise in renewable energy. She also will help start-ups build a diversified business model to better withstand economic cycles.

"For me, it's a continued part in what has been my lifelong work in this area." Quam said.

Thomas Lee • 612-673-7744