J.C. Flowers & Co. Explained

J.C. Flowers & Companies
Assets:$7.9 billion
Aum: US$5.4 billion[1]
Divisions:J.C. Flowers I L.P. and J.C. Flowers II L.P.
Homepage:jcfco.com

J.C. Flowers & Co. is an American private equity investment firm, focused on investments in the financial services sector. The firm, founded in 2001,[2] is based in New York City and run by billionaire[3] J. Christopher Flowers, a former Goldman Sachs partner.[4] As of 2017, the firm had invested more than $15 billion in capital.[5]

JC Flowers manages two private equity funds, 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, David Morgan.[6]

Investments

JC Flowers' most notable investments include such financial services companies as:

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 50.2 percent of the company. This deal fell through, however.[7] In late 2007, JC Flowers was one of the many companies bidding for the troubled British Bank, Northern Rock.[8] They pulled out of the bidding in December.[9]

On January 21, 2008, JC Flowers made an informal bid of £4bn for Friends Provident.[10] A revised bid of £3.5 billion was rejected.[11] On March 14, 2008, JC Flowers was reported to be in talks to buy troubled US investment bank Bear Stearns.[12] 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.[13] At the end of 2006, JC Flowers purchased a company called PanEuroLife in Luxembourg and started to build the NewPELGroup.[14]

In July 2010 JC Flowers announced its intention to purchase a stake in the UK's Kent Reliance Building Society[15] and this deal was completed on 1 February 2011 with the formation of OneSavings Bank Plc.

In December 2012 JC Flowers was reported to have submitted a non-binding first-round bid for the 316 branches being re-auctioned by The Royal Bank of Scotland Group.[16] In July 2013, JC Flowers agreed to buy £450 million of loans belonging to struggling British bank Northern Rock.[17]

In October 2016, JC Flowers aided the acquisition of retail stockbroker TD Direct Investing Europe by a smaller rival Interactive Investor to create the United Kingdom's second-biggest online fund supermarket.[18]

In May 2017, JC Flowers completed the acquisition of the insurance company UK General for an undisclosed sum.[19]

Notes and References

  1. Web site: J.C. Flowers & Co. LLC (New York) . Wallmine. August 15, 2024.
  2. Web site: JC Flowers profile . https://web.archive.org/web/20071012233059/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1089967 . dead . October 12, 2007 . . 2008-04-16.
  3. Web site: Billionaire list - J Christopher Flowers . . 2007-10-07 . 2008-04-16.
  4. News: J. Christopher Flowers. Forbes. 2017-07-14. en.
  5. News: Private Investment Firm, J.C. Flowers, Acquires UK General. 2017-05-25. Insurance Journal. 2017-07-14. en-US.
  6. Web site: JC Flowers hires financial heavyweights . Financial Times . 2009-11-24 . 2010-05-28.
  7. Web site: Jobs lost at Sallie Mae, J.C. Penney . Times Leader . 2008-01-18 . 2008-04-16 . https://web.archive.org/web/20090221083156/http://www.timesleader.com/business/20080118_18_layoffs_biz_ART.html . 2009-02-21 . dead .
  8. News: JC Flowers reveals Northern Rock bid team . https://web.archive.org/web/20071029184403/http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/26/cnrock126.xml . dead . October 29, 2007 . . 2007-10-26 . 2008-04-16 . London . Edmund . Conway . Russell . Hotten.
  9. News: JC Flowers seen exiting N. Rock race. https://web.archive.org/web/20071213055555/http://uk.reuters.com/article/hotStocksNews/idUKWLB426020071207 . dead . December 13, 2007 . 2007-12-07 . Reuters . 2008-04-16 . Steve . Slater.
  10. News: JC Flowers in £4bn bid for troubled Friends Provident . https://web.archive.org/web/20090514043415/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3221929.ece . dead . May 14, 2009 . The Times . 2008-01-21 . 2008-04-16 . London . Christine . Seib.
  11. News: Friends Prov rejects new £3.5bn Flowers offer . https://web.archive.org/web/20090514043421/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3650870.ece . dead . May 14, 2009 . The Times . 2008-03-31 . 2008-04-16 . London . Patrick . Hosking.
  12. Web site: Bear Stearns Weekend Talks Reveal 2 Key Contenders . CNBC . 2008-03-14 . 2008-04-16.
  13. Web site: A group of investors coordinated by J.C. Flowers intends to submit a public offer to purchase around 24.9% of the shares of Hypo Real Estate Holding AG. . 2008-04-16 . 2008-04-16 . https://web.archive.org/web/20080910105111/http://www.hyporealestate.com/eng/pdf/AdHoc_Osiris_engl_final.pdf . 2008-09-10 . dead .
  14. Web site: PanEuroLife : J.C. Flowers installe ses bureaux à Capellen dans l'immeuble CAP 2. www.agefi.lu. 2017-07-14.
  15. News: Kent Reliance and JC Flowers in joint venture talks . BBC News . 2010-07-12 . 2010-07-12.
  16. News: Nationwide pulls out of bidding for RBS branches . Herald. 2012-12-15 . 2010-07-17.
  17. News: J.C. Flowers set to buy portion of Northern Rock loans: paper . Abhishek Takle . Reuters . 17 July 2013.
  18. News: TD Direct Investing bought by 'challenger' broker. Aime Williams. 12 October 2016. Financial Times. subscription .
  19. News: Private Investment Firm, J.C. Flowers, Acquires UK General. 2017-05-25. Insurance Journal. 2017-07-14. en-US.

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