McLean, VA-based FJ Capital Management has raised $145m for the Financial Hybrid Opportunity Fund LLC.
The fund received support from a diverse range of institutional investors including a major foundation, endowments and multiple family offices. It invests in 27 micro-cap and private community banks, many of which have been underwritten to achieve target internal rate of returns (IRRs) of 25% or greater. Approximately $82m (57%) of the commitments have been called and invested.
Led by Martin Friedman, Co-Founder and Chief Investment Officer, FJ Capital Management’s Investment Team also plans to use its capital to invest in a de novo bank headquartered in New York City that focuses on banking technology and other innovation industries. In addition, the team will invest in a mortgage company that is raising private capital to buy a bank with a similar mortgage-oriented focus.
Established in 2008 by Friedman and Andrew Jose as an equity event driven fund focused on the opportunities created by the accelerating consolidation of Community and Regional Banks in the U.S., FJ has a 7-person investment team that combined, has over 120 years of direct experience investing in Financials.
Eaton Partners was the placement agent.
FinSMEs
24/10/2018