General Atlantic said Thursday that it has completed its buy of First Republic Bank. General Atlantic co-led a group of investors, which included Colony Capital, to buy First Atlantic from Bank of America. The deal was announced in late 2009. Financial terms were not announced. First Republic is a San Francisco bank and wealth management firm. General Atlantic is a private equity firm based in Greenwich, Conn.
General Atlantic LLC (“GA”), a leading global growth equity firm, announced today the completion of the management-led transaction re-establishing First Republic Bank, the San Francisco-based private bank and wealth management firm, as an independent financial institution. GA co-led a group of private investors in supporting First Republic Bank’s founding leadership team in the transaction.
“We congratulate First Republic Bank’s leadership and their dedicated team as they renew their independence,” said Marc McMorris, Managing Director at General Atlantic and head of the firm’s Palo Alto office. “We also are very pleased to renew our own early association and support of First Republic Bank’s proven, service-intensive formula for building strong client relationships. First Republic Bank’s hallmarks — financial strength and commitment to clients — resonate today more than ever, and we look forward to participating in its continued long-term growth and success.”
General Atlantic was an early investor in First Republic Bank and had a representative on the bank’s Board of Directors from 1987 until 1990. First Republic has been one of the nation’s top performing banks for many years. Between Dec. 31, 1997 and Sept. 21, 2007, when the bank was acquired by Merrill Lynch, total return on First Republic common stock was 286%. This compares to 57.3% for the S&P 500, and 40.3% for the KBW Bank Index — the bank’s peer group.
With the closing of this transaction, GA has invested a total of $1.1 billion in growth equity in four companies in 2010, including three companies in the financial services sector. GA’s other 2010 financial services investments are Markit, a leading global provider of independent financial data, valuation tools and trade processing infrastructure across asset classes; and Pierpont, a newly-launched government securities broker-dealer.
A leader in recognizing technology’s impact in revolutionizing the execution and delivery of financial services across the world, GA has invested over $2 billion in more than twenty financial services companies since its founding in 1980. In addition to financial services, GA focuses on providing growth equity globally to emerging leaders in the following sectors: healthcare; energy and resources; business services and technology; and media and consumer.
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Established in 1980, GA manages approximately $15 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Dusseldorf, Hong Kong, Beijing, Mumbai and Sao Paulo. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.