FJ Capital Management has raised $145 million for its financial hybrid opportunity fund. The fund invests in 27 micro-cap and private community banks. Eaton Partners was the placement agent.
ROWAYTON, Conn., Oct. 23, 2018 (GLOBE NEWSWIRE) — Eaton Partners, one of the world’s leading private capital advisory and fund placement firms and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), is pleased to have acted as the exclusive placement agent for FJ Capital Management’s Financial Hybrid Opportunity Strategy.
The strategy, which raised $145 million in capital commitments for the Financial Hybrid Opportunity Fund LLC and a related separately managed account, invests in 27 micro-cap and private community banks, many of which have been underwritten to achieve target internal rate of returns (IRRs) of 25% or greater. Approximately $82 million (57%) of the commitments have been called and invested. FJ Capital Management received strong support from a diverse range of institutional investors including a major foundation, endowments and multiple family offices.
“The new capital allows us to invest in open market opportunities, as well as private capital raises, that have already been underwritten and approved for investment. As consolidation continues across the banking industry, we believe many of these positions are strong candidates for M&A transactions,” said Martin Friedman, Co-Founder and Chief Investment Officer at FJ Capital Management.
FJ Capital Management’s Investment Team also plans to use its capital to invest in a de novo bank headquartered in New York City that focuses on banking technology and other innovation industries. In addition, the team will invest in a mortgage company that is raising private capital to buy a bank with a similar mortgage-oriented focus.
“The team at FJ Capital Management has a focused plan to take advantage of underserved opportunities in the community banking space,” said Tom Kreitler, Partner at Eaton Partners. “We are thrilled to partner with them and congratulate them on another successful raise.”
Over the past 12 months, Eaton Partners has successfully closed 15 funds, totaling $15.5 billion.
About Eaton Partners
Eaton Partners, a Stifel Company, is one of the world’s leading fund advisory and capital placement agents, having raised more than $95 billion across more than 120 highly differentiated alternative investment funds and offerings. Founded in 1983, Eaton advises and raises institutional capital for investment managers across alternative strategies – private equity, private credit, real assets, real estate, and hedge funds/public market – in both the primary and secondary markets. Eaton Partners maintains offices and operates throughout North America, Europe and Asia.
Eaton Partners is a division of Stifel, Nicolaus & Company, Incorporated, Member SIPC and NYSE. Eaton Partners subsidiary Eaton Partners (U.K.) LLP is authorized and regulated by the Financial Conduct Authority (FCA). Eaton Partners subsidiary Eaton Partners Advisors (HK) Limited is approved as a Type 1-licensed company under the Securities and Futures Commission (SFC) in Hong Kong. Eaton Partners and the Eaton Partners logo are trademarks of Eaton Partners, LLC, a limited liability company. ® Eaton Partners, 2018. For more information, please visit https://eaton-partners.com/.
About FJ Capital Management
FJ Capital Management was established in 2008 by Martin Friedman and Andrew Jose as an equity event driven fund focused on the opportunities created by the accelerating consolidation of Community and Regional Banks in the U.S. FJ has a 7-person investment team that combined, has over 120 years of direct experience investing in Financials. The Fund has consistently ranked in the top 5% of all Equity based peer groups over 1, 3 and 5 years, as well as since inception.
Stifel Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; Century Securities Associates, Inc., and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com.