J.C. Flowers & Co.

J.C. Flowers & Companies

Type	Private
Industry	Private equity, Financial services
Founded	2001 (2001)
Founder	J. Christopher Flowers
Headquarters	New York, New York, United States
Products	Leveraged buyout, Growth capital
Total assets	$7.9 billion
Divisions	J.C. Flowers I L.P. and J.C. Flowers II L.P.
Website	www.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,^[1] is based in New York City and run by billionaire^[2] J. Christopher Flowers, a former Goldman Sachs partner.^[3] As of 2017, the firm had invested more than $15 billion in capital.^[4]

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.^[5]

Investments

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

• Chi-X Australia along with Chi-X Japan and Chi-Tech Hong Kong
• Enstar Group
• Shinsei Bank
• NIBC Bank N.V.
• Hypo Real Estate Group (Germany) (formerly 24.9%)
• HSH Nordbank (Germany) (26.6%)
• Fox-Pitt Kelton Cochran Caronia Waller
• Equita Sim (Italy) (50,01%)
• Eurovita (Italy) (78,19%)
• MF Global (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 50.2 percent of the company. This deal fell through, however.^[6] In late 2007, JC Flowers was one of the many companies bidding for the troubled British Bank, Northern Rock.^[7] They pulled out of the bidding in December.^[8]

On January 21, 2008, JC Flowers made an informal bid of £4bn for Friends Provident.^[9] A revised bid of £3.5 billion was rejected.^[10] On March 14, 2008, JC Flowers was reported to be in talks to buy troubled US investment bank Bear Stearns.^[11] 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.^[12] At the end of 2006, JC Flowers purchased a company called PanEuroLife in Luxembourg and started to build the NewPELGroup.^[13]

In July 2010 JC Flowers announced its intention to purchase a stake in the UK's Kent Reliance Building Society^[14] 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.^[15] In July 2013, JC Flowers agreed to buy £450 million of loans belonging to struggling British bank Northern Rock.^[16]

In October 2016, JC Flowers aided the acquisition of retail stockbroker TD Direct Investing Europe by a smaller rival Interactive Investor to create the UK’s second-biggest online fund supermarket.^[17] In May 2017, JC Flowers completed the acquisition of the insurance company UK General for an undisclosed sum.^[18]

References

External links

• J.C. Flowers & Co. (company website)