GTCR Announces Investment in PrivateBancorp
Chicago, November 27, 2007 GTCR, one of the nation’s leading private equity firms, today announced it has agreed to invest approximately $100 million in PrivateBancorp, Inc. (NASDAQ: PVTB). GTCR is the lead institutional investor among a number of institutions and individuals that will together provide approximately $200 million in new equity to PrivateBancorp.
The investment by GTCR and co-investors will assist PrivateBancorp as it pursues a strategy of growth and expansion to become the preeminent middle-market commercial, commercial real estate and private bank in Chicago and in the other markets that it serves. PrivateBancorp recently hired Larry Richman as its new President and Chief Executive Officer. Mr. Richman was formerly President and CEO of LaSalle Bank in Chicago. The investment will provide the capital to expand PrivateBancorp’s client relationships and substantially grow its loan portfolio.
PrivateBancorp was co-founded in 1989 by Chairman Ralph Mandell. Mr. Mandell and the management team have built PrivateBancorp to over $4.5 billion in assets with 18 offices of The PrivateBank located in the Atlanta, Chicago, Detroit, Milwaukee, St. Louis, and Kansas City metropolitan areas. PrivateBancorp has been one of the fastest growing banks in the US and has built a reputation for providing highly personalized premium financial services to privately held businesses, affluent individuals, wealthy families, professionals and entrepreneurs.
“GTCR is thrilled about this opportunity to partner with a management team that has a proven track record of building successful banking businesses. We strongly believe that, with Larry and Ralph’s leadership, PrivateBancorp will become the preeminent middle-market commercial, commercial real estate and private bank in the nation,” said GTCR Principal Collin Roche.
“We have been focused on identifying and pursuing financial services investments, particularly in the areas of commercial lending and wealth management,” added GTCR Vice President John Dills. “PrivateBancorp represents a unique opportunity to invest growth capital behind a world class management team in an established Chicago-based bank that has already been successful in these areas.”
“This private placement gives us the capital we need to support our Strategic Growth and Transformation Plan, which we previously announced on November 2, 2007. We are grateful to have received the financial support of GTCR, one of the nation’s leading private equity firms. GTCR has a long and successful track record of partnering with management teams to build industry-leading companies,” commented Mr. Richman.
GTCR’s $100 million investment will be comprised of approximately $59 million in the form of common stock and approximately $41 million in the form of convertible preferred shares. Pro forma for the transaction, GTCR will own approximately 11.7% of the Company after giving effect to the conversion of the preferred shares. Following closing, it is anticipated that Collin Roche will join the Board of Directors of the company.
SunTrust Robinson Humphrey served as financial advisor to GTCR, while Kirkland & Ellis LLP and Jones Day provided legal counsel to GTCR.
PrivateBancorp, Inc., through its PrivateBank subsidiaries provides distinctive, highly personalized, premium financial services to a growing array of successful entrepreneurial small to middle market public and privately held businesses, affluent individuals, wealthy families, professionals, entrepreneurs and real estate investors. The PrivateBank uses a European tradition of “private banking” as a model to develop lifetime relationships with our clients. Through a team of highly qualified managing directors, The PrivateBank delivers a sophisticated suite of tailored credit, treasury and wealth management solutions to meet our client’s personal and commercial financial needs. The Company, which had assets of $4.5 billion as of September 30, 2007, has 18 offices located in the Atlanta, Chicago, Detroit, Milwaukee, St. Louis, and Kansas City metropolitan areas. Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.’s website at www.pvtb.com.
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.