J.C. Flowers & Co.

Last updated
J.C. Flowers & Companies
Type Private
Industry Private equity, Financial services
Founded2001;21 years ago (2001)
Founder J. Christopher Flowers
Headquarters New York, New York, United States
Products Leveraged buyout, Growth capital
AUM Decrease2.svg US$5.4 billion [1]
Total assets $7.9 billion
Divisions J.C. Flowers I L.P. and J.C. Flowers II L.P.
Website 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]

Contents

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]

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Landmark Mortgages Limited, formerly Northern Rock plc and later NRAM plc, is a British asset holding and management company which was split away from the Northern Rock bank in 2010. It was publicly owned through the British Government's UK Asset Resolution following Northern Rock's nationalisation in 2008 until NRAM plc was sold to Cerberus Capital Management in 2016. The company is closed to new business.

References

  1. ↑ https://wallmine.com/adviser/211929/j-c-flowers-co-llc
  2. ↑ "JC Flowers profile". BusinessWeek . Retrieved 2008-04-16.
  3. ↑ "Billionaire list - J Christopher Flowers". Forbes . 2007-10-07. Retrieved 2008-04-16.
  4. ↑ "J. Christopher Flowers". Forbes. Retrieved 2017-07-14.
  5. ↑ "Private Investment Firm, J.C. Flowers, Acquires UK General". Insurance Journal. 2017-05-25. Retrieved 2017-07-14.
  6. ↑ "JC Flowers hires financial heavyweights". Financial Times. 2009-11-24. Retrieved 2010-05-28.
  7. ↑ "Jobs lost at Sallie Mae, J.C. Penney". Times Leader. 2008-01-18. Archived from the original on 2009-02-21. Retrieved 2008-04-16.
  8. ↑ Conway, Edmund; Hotten, Russell (2007-10-26). "JC Flowers reveals Northern Rock bid team". London: The Daily Telegraph. Archived from the original on October 29, 2007. Retrieved 2008-04-16.
  9. ↑ Slater, Steve (2007-12-07). "JC Flowers seen exiting N. Rock race". Reuters. Retrieved 2008-04-16.
  10. ↑ Seib, Christine (2008-01-21). "JC Flowers in £4bn bid for troubled Friends Provident". The Times. London. Retrieved 2008-04-16.
  11. ↑ Hosking, Patrick (2008-03-31). "Friends Prov rejects new £3.5bn Flowers offer". The Times. London. Retrieved 2008-04-16.
  12. ↑ "Bear Stearns Weekend Talks Reveal 2 Key Contenders". CNBC. 2008-03-14. Retrieved 2008-04-16.
  13. ↑ "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" (PDF). 2008-04-16. Archived from the original (PDF) on 2008-09-10. Retrieved 2008-04-16.
  14. ↑ "PanEuroLife : J.C. Flowers installe ses bureaux à Capellen dans l'immeuble CAP 2". www.agefi.lu. Retrieved 2017-07-14.
  15. ↑ "Kent Reliance and JC Flowers in joint venture talks". BBC News. 2010-07-12. Retrieved 2010-07-12.
  16. ↑ "Nationwide pulls out of bidding for RBS branches". Herald. 2012-12-15. Retrieved 2010-07-17.
  17. ↑ Abhishek Takle (17 July 2013). "J.C. Flowers set to buy portion of Northern Rock loans: paper". Reuters.
  18. ↑ Aime Williams (12 October 2016). "TD Direct Investing bought by 'challenger' broker" . Financial Times.
  19. ↑ "Private Investment Firm, J.C. Flowers, Acquires UK General". Insurance Journal. 2017-05-25. Retrieved 2017-07-14.
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