GRAND RAPIDS — Northpointe Bancshare Inc. raised $25 million in capital through a private placement of common stock with Castle Creek Capital LLC, a private equity firm based in Rancho Santa Fe, Calif., north of San Diego.
The Grand Rapids-based parent company of Northpointe Bank plans to use proceeds from the capital raise to support further growth and “other general corporate purposes,” the company said.
Castle Creek owns 27 percent of the outstanding equity of Northpointe.
“Castle Creek is a sophisticated and experienced investor with a long history of bringing value to community banks like Northpointe. We are excited about the expertise they bring to our company, and their investment is a validation of Northpointe’s strengths, strategies, values, and opportunities,” Northpointe President and CEO Charles Williams said in a statement. “The additional capital will allow Northpointe to support organic growth opportunities and continue to grow market share in our diversified business units while bringing value and innovation to the people we serve.” *
*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.