J.C. Flowers & Co. LLC – a leading private investment firm dedicated to investing globally in the financial services industry – recently announced it has closed its investment with Capital Funding Bancorp, Inc., the holding company for CFG Bank, a top-performing Baltimore-based bank providing financing and banking solutions to the national healthcare and multifamily industries.
J.C. Flowers initially made a $125 million, all-primary equity investment into the company, which can increase to as much as $165 million over the next five years for a minority interest. In connection with the closing, Louis Vachon and Tom Harding of J.C. Flowers will join the company’s board of directors and CFG Bank.
CFG Bank is the largest bank based in Baltimore and among the five largest healthcare bridge-to-HUD lenders in the country, with more than 30 years of experience in the sector. The bank currently has over $5 billion in assets, up from $1 billion at the end of 2019.
PNC FIG Advisory, part of PNC Capital Markets LLC, acted as the sole placement agent and exclusive financial advisor to the Company. And Hunton Andrews Kurth LLP served as legal counsel to the Company. Sullivan & Cromwell LLP served as legal counsel to J.C. Flowers.
KEY QUOTES:
“We are pleased to partner with J.C. Flowers and welcome Louis and Tom to our board of directors. As our business continues to grow, this investment will support our trajectory and enable us to maintain our big bank capabilities and expertise, coupled with our relationship-driven boutique bank service, that differentiate us in the market. For 30 years, we have embraced our entrepreneurial and personalized approach that has allowed us to execute creative, unique solutions to help our clients reach – and exceed – their goals. Through this partnership, we look forward to continuing our track record of consistent, profitable growth.”
- Jack Dwyer, the Company’s Chairman
“We are proud to support the growth of CFG Bank, a leader in both the consumer deposit banking market of Baltimore, my hometown, and nationwide in the market for healthcare and multifamily bridge lending. We are thrilled to collaborate closely with Jack Dwyer to help CFG Bank’s management team take advantage of the many growth opportunities in the market today. We believe J.C. Flowers’ deep experience in financial services will help CFG Bank enhance the services it provides its customers and clients while maintaining the creativity and nimbleness for which the Bank is already well-known.”
- Tom Harding, Managing Director of J.C. Flowers
“We are excited to work with CFG Bank’s excellent management team, and we look forward to providing operational and financial input to the Bank as it moves on to its next stage of responsible growth.”
- Louis Vachon, Operating Partner of J.C. Flowers and former Chief Executive Officer and President of National Bank of Canada
