INVESTMENT OBJECTIVES

The Fund’s investment objective is to seek long-term capital appreciation by providing equity capital to De Novo and early stage community banks. The Fund’s strategies to achieve this investment objective include:

  • Applying our experience in community banking, including de novo bank start-ups, community bank stock offerings, valuations and mergers and acquisitions;
  • Investing in both private and public companies in the financial services sector which we believe offer attractive valuation metrics and above average growth opportunities through experienced and motivated management, geographic advantages or high return on equity business models, and
  • Diversifying these investments effectively across lending exposures and across geographic markets.
PRIVATE COMMUNITY BANK INVESTMENTS

We provide community banks with equity capital via de novo capital raises, secondary offerings and private placements. The average investment size for de novo opportunities is $500,000 to $1,500,000 and does not exceed 9.9% of the total capital of the bank or holding company. The Fund has a long-term investment horizon and supports strong management teams and community banks through their growth cycle.

INVESTMENT CRITERIA
  • Experienced management teams with proper incentive to generate growth and shareholder returns
    • Appropriate levels of management/board investment and options
    • In-market experience preferred with significant previous banking experience, preferably with a community bank
    • History of excellent credit quality and profitability
  • Above average growth prospects and favorable demographics in the bank’s identified markets
    • Above average population growth and income
    • Diversified business environment
    • M&A consolidation trends/valuations
  • Fundamentally strong business plans and high return on equity strategies
    • Diversified lending portfolio
    • Superior core deposit generation capabilities
    • Fee based products and services
PUBLICLY TRADED COMMUNITY BANK INVESTMENTS

The Fund also engages in secondary market purchases of community bank stocks. The Fund evaluates opportunities to invest in publicly traded community banks under $2.0 billion in assets. Our long term mentality allows the fund to invest in traded securities which may be too illiquid or too small for larger institutional investors.

The information on this website does not constitute an offer to sell or a solicitation of an offer to buy interests in the Fund. Partnership interests in the Fund are only being offered privately to accredited investors by means of the Fund's Private Placement Memorandum, and only to residents of those states in which the Fund has filed or will file a notice of sale.