In 2010, a newly formed bank holding company, Community Bancorp LLC (“CBC”), completed its capital raise with $1.0 billion of committed equity capital. The company was established to acquire and operate failed or distressed U.S. banks. In early 2011, CBC acquired Cadence Financial Corporation and Superior Bank, and subsequently merged both companies in November 2011, rebranding the combined bank as Cadence Bancorp (“Cadence”). In an effort to greatly expand its Houston presence, Cadence acquired Encore Bank in July 2012. Cadence’s subsidiary, Cadence Bancorporation, successfully completed an initial public offering on April 13, 2017 (NYSE: CADE) and after finalizing the planned monetization of its public shares the following year, marked the end of their long-term partnership with Platform. Platform began focusing on regional bank investments in 2008, believing the financial crisis created an attractive time to invest in banks. We reviewed a number of opportunities over a two-year period and found that given the lack of control required by bank holding company regulations, it was critical to partner with an experienced management team to execute the strategy. Platform had a long-standing relationship with Cadence leadership team members, Paul Murphy and Marc Shapiro, and as a result, Cadence offered Platform an opportunity to invest in a targeted industry with well-known and respected executives. In addition, Platform was asked to manage a co-investment partnership, primarily made up of Houston-based investors, that invested in Cadence alongside Platform.
Cadence Bancorp
Cadence Bancorp (“Cadence”) (NYSE: CADE) is a bank holding company, established to acquire and operate failed or distressed U.S. banks.
Cadencebank.com
INDUSTRY
Financial Services
Investment date
2010
EXIT DATE
2018
Headquarters
Houston, TX
Investment Overview
Transaction Background