Irvine-based Genesis Bank, which began in 2021, raised $500 million in equity capital commitments, saying there is a “meaningful opportunity” to buy and recapitalize other banks in the Western Region of the U.S.
The equity capital includes commitments from large and medium-sized private equity firms, traditional bank fund investors, and family offices. Genesis plans to draw on the capital after entering an agreement to acquire or recapitalize a bank.
“In recognition of the challenges faced across the banking sector, we believe there is a meaningful opportunity for Genesis to leverage its leading technology and scalable platform, clean balance sheet, abundant capital, and veteran expertise, to actively and opportunistically pursue acquisition and recapitalization transactions across the Western Region,” Founder, Chairman and Chief Executive Stephen H. Gordon said in a statement.
“Genesis Bank was launched in August 2021 after the sale of Opus Bank and during the height of the COVID pandemic and was built in anticipation that at some point there would be an adverse economic cycle that would hit post-COVID,” he added.
Gordon successfully started and sold two banks, including Opus to Pacific Premier Bancorp. in 2020.
Piper Sandler & Co. is acting as placement agent to Genesis Bank.
