RANCHO SANTA FE, Calif.–(PRNewswire)–Castle Creek is pleased to announce the final closing of its fourth fund, Castle Creek Capital Partners IV, L.P. (“Fund IV”), with $331 million in capital commitments. The capital was raised from a diverse group of institutional investors, including public and private pension funds, prominent fund of funds and financial institutions, with Thomas Capital Group serving as placement agent. The primary focus of Fund IV will be on recapitalization, growth equity, and buyout investments in U.S.-based community banks.
Fund IV’s focus during this extended economic recovery will be on turnaround and distressed bank investments. Castle Creek will use its deep industry knowledge and expertise to work in concert with local management to help restore profitability and enhance the growth prospects of its portfolio banks. Thus far, Fund IV has completed seven bank investments, establishing a well-balanced and diversified portfolio across six major U.S. metropolitan markets.
“We formed our fourth fund because we believe the severe recessionary downturn over the last three years has caused significant distress in the banking arena, and the valuations of select community banks will benefit greatly from a combination of additional capital support, the ongoing economic recovery, and a building wave of M&A activity,” Castle Creek Managing Partner John Eggemeyer commented. He added that in his view “this is the most opportune time in the past two decades to invest in the community banking sector.” Castle Creek has pioneered private equity investments in banks since its inception in the early 1990s and is today one of most prominent and active private equity bank investors in the U.S.
“We have been investing in special situations and distressed managers for more than a decade, and we believe Castle Creek Fund IV is one of the most coherent private propositions targeting the continued dislocation in the financial services sector,” said Jeff Collins, Portfolio Manager, Morgan Stanley Alternative Investment Partners. “Castle Creek’s operationally-focused and deeply experienced team, combined with the Fund’s focus on small- to middle-markets where we believe the potential for value creation is greatest, makes for a particularly compelling investment opportunity for AIP.”*
*The statement quoted above was made by an executive of a Castle Creek portfolio company.
The portfolio company executive has not received compensation for the above statement and this statement is solely his opinion and representative of his experience with Castle Creek. Other portfolio company executives may not necessarily share the same view. An executive in a Castle Creek portfolio company may have an incentive to make a statement that portrays Castle Creek in a positive light as a result of the executive's ongoing relationship with Castle Creek and any influence that Castle Creek may have or had over the governance of the portfolio company and the compensation of its executives. It should not be assumed that Castle Creek's investment in the referenced portfolio company has been or will ultimately be profitable.