Centerbridge Partners is seeking to raise approximately $1bn through a continuation fund to retain its minority interest in Fairstone Bank of Canada, according to a report by Bloomberg citing sources familiar with the matter.
The proposed structure will allow existing limited partners the option to cash out, roll their interests, or reinvest under new terms. The final size of the fund will depend on the level of investor participation, sources said.
Centerbridge declined to comment on the fundraising process, while Fairstone Bank did not immediately respond to a request for comment.
Centerbridge originally entered the Canadian financial services market in 2019 through a joint acquisition with Stephen Smith – Founder of Smith Financial Corporation – of Walmart Canada Bank, later rebranded as Duo Bank of Canada. The following year, Duo Bank acquired Fairstone Financial Holdings Inc., with the combined entity subsequently rebranded as Fairstone Bank of Canada.
In 2023, Fairstone announced a merger with Home Trust Company. Smith Financial now holds a controlling stake in the combined business, while Centerbridge and Ontario Teachers’ Pension Plan retain minority positions.
