Pennsylvania-based Context Capital Partners has announced that it has raised and is now deploying additional capital for its Context BH Equity Fund family.
Pennsylvania-based Context Capital Partners has announced that it has raised and is now deploying additional capital for its Context BH Equity Fund family.
The Context BH Equity Fund invests in de novo and community banks throughout the US and now has a total of USD44m under management.
It focuses on investments in well-capitalised community banks operating in underserved markets with proven management teams, few problem loans, and high growth potential.
Context says these banks typically provide financially attractive initial investment opportunities, but have become even more appealing in the current banking environment. The ongoing banking sector crisis has negatively impacted all bank stocks, even those of comparatively healthy young banks.
‘It’s no secret that the banking industry has been severely impacted by the current economic downturn; yet there remains a substantial valuation gap between relatively new community banks and their larger financial brethren,’ says Bob Hendershott, Context BH Equity Fund manager.
‘Many of these community banks remain strong and focused, and are carrying on with business as usual – making loans, taking deposits, and helping individuals and businesses in their communities. Moreover, their relationships with solid medium-sized businesses in their communities are deepening as larger banks are distracted with other issues.’
The Context BH Equity system tracks nearly 700 qualified community banks on an ongoing basis. Over the past 18 months, the team has evaluated over 300 deals and conducted significant due diligence on over 100 banks. There are 27 banks currently in its portfolio and it anticipates investing in up to an additional dozen banks during 2009.
