JC Flowers
Encyclopedia
J.C. Flowers & Co. is a private equity
investment firm, focused on investments in the financial services
sector. The firm, founded in 2001, is based in New York City
and run by billionaire J. Christopher Flowers, a former Goldman Sachs
partner.
JC Flowers manages two private equity fund
s, J.C. Flowers I LP, closed in 2002 with $900 million of committed capital, and J.C. Flowers II LP, closed in 2006 with $7.0 billion of committed capital. Both funds are focused exclusively on the financial services
sector. JC Flowers in Europe is led by its managing director, Dr. David Morgan
.
companies as:
In mid-2007, an investor group led by JC Flowers signed an agreement to purchase Sallie Mae for approximately $25 billion (USD), giving JC Flowers and Friedman Fleischer & Lowe
50.2 percent of the company. This deal fell through, however.
In late 2007, JC Flowers was one of the many companies bidding for the troubled British Bank, Northern Rock
. They pulled out of the bidding in December.
On January 21, 2008, JC Flowers made an infomal bid of £4bn for Friends Provident
. A revised bid of £3.5 billion was rejected On March 14, 2008, JC Flowers was reported to be in talks to buy troubled US investment bank Bear Stearns
. On April 16, 2008, JC Flowers issued an offer to buy 24.9% of the shares of Hypo Real Estate Group at a price of €22.50 per share. End of 2006, JC Flowers purchased a company called PanEuroLife in Luxembourg and started to build the NewPELGroup.
In July 2010 JC Flowers announced its intention to purchase a stake in the UK's Kent Reliance Building Society
and this deal was completed on 1 February 2011 with the formation of OneSavings Bank Plc
.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm, focused on investments in the financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
sector. The firm, founded in 2001, is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and run by billionaire J. Christopher Flowers, a former Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
partner.
JC Flowers manages two private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s, J.C. Flowers I LP, closed in 2002 with $900 million of committed capital, and J.C. Flowers II LP, closed in 2006 with $7.0 billion of committed capital. Both funds are focused exclusively on the financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
sector. JC Flowers in Europe is led by its managing director, Dr. David Morgan
David Morgan (businessman)
David Raymond Morgan AO is the former CEO and Managing Director of Westpac Banking Corporation, one of Australia's four major banks and Chairman of the Australian Bankers Association.-Early life, education and personal life:...
.
Investments
JC Flowers' most notable investments include such financial servicesFinancial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
companies as:
- Enstar Group
- Shinsei BankShinsei Bankis a Japanese commercial bank headquartered in Chiyoda, Tokyo.-History:Shinsei Bank is the successor of a trust bank, the Long-Term Credit Bank of Japan, which had a government monopoly on the issuance of many long-term debt securities...
- NIBC Bank N.V.NIBC BankNIBC Bank N.V. is a merchant bank in the Netherlands. NIBC is owned by a consortium of international financial institutions organised by J.C. Flowers & Co LLC. NIBC has offices in The Hague, Brussels, Frankfurt, London and Singapore.- History :...
- Hypo Real Estate GroupHypo Real EstateThe Hypo Real Estate Holding AG is a holding company based in Munich, Germany which comprises a number of real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset...
(Germany) (formerly 24.9%) - HSH NordbankHSH NordbankHSH Nordbank is a commercial bank in northern Europe with headquarters in Hamburg as well as Kiel, Germany. It is active in corporate and private banking. HSHs main focus is on shipping, transportation, real estate and renewable energy....
(Germany) (26.6%) - Crump Group
- Fox-Pitt Kelton Cochran Caronia WallerFox-Pitt Kelton Cochran Caronia WallerFox-Pitt Kelton Cochran Caronia Waller is an investment bank focused on mergers and acquisitions advisory services, private placements of debt and equity as well as equity research...
- Equita Sim (Italy) (50,01%)
- MF GlobalMF GlobalMF Global , formerly known as Man Financial, was a major global financial derivatives broker. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference , foreign exchange and spread betting. MF Global was...
(US) (6.8%)
Other notable activity
JC Flowers has also been active in a number of high profile contemplated transactions that did not occur.In mid-2007, an investor group led by JC Flowers signed an agreement to purchase Sallie Mae for approximately $25 billion (USD), giving JC Flowers and Friedman Fleischer & Lowe
Friedman Fleischer & Lowe
Friedman Fleischer & Lowe is a private equity firm, founded in 1998 by Tully Friedman, Spencer Fleischer, David Lowe, and Christopher Masto. The firm makes investments primarily through leveraged buyouts and growth capital investments....
50.2 percent of the company. This deal fell through, however.
In late 2007, JC Flowers was one of the many companies bidding for the troubled British Bank, Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
. They pulled out of the bidding in December.
On January 21, 2008, JC Flowers made an infomal bid of £4bn for Friends Provident
Friends Provident
Friends Provident was an organisation offering life insurance based in the United Kingdom. It was founded as a mutual Friendly Society for Quakers, although it was demutualised in 2001 and became a publicly listed company, no longer linked with the Religious Society of Friends...
. A revised bid of £3.5 billion was rejected On March 14, 2008, JC Flowers was reported to be in talks to buy troubled US investment bank Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
. On April 16, 2008, JC Flowers issued an offer to buy 24.9% of the shares of Hypo Real Estate Group at a price of €22.50 per share. End of 2006, JC Flowers purchased a company called PanEuroLife in Luxembourg and started to build the NewPELGroup.
In July 2010 JC Flowers announced its intention to purchase a stake in the UK's Kent Reliance Building Society
Kent Reliance Building Society
Kent Reliance Banking service, also known as KRBS, was a building society based in Kent, England. Incorporating the Chatham Reliance , Dover District , Herne Bay and Kent & Canterbury , KRBS was the fastest growing building society in the UK between 2003 and 2008 and was a member of the Building...
and this deal was completed on 1 February 2011 with the formation of OneSavings Bank Plc
OneSavings Bank
OneSavings Bank Plc which trades as Kent Reliance Banking Services or krbs.com is a British banking company that has been formed by Kent Reliance Building Society and JC Flowers.-Banking Services:...
.
External links
- J.C. Flowers & Co. (company website)