Hovde's investment funds are poised to capitalize on a unique opportunity in the community bank segment. An unprecedented opportunity exists as the financial services industry has been ravaged by nonperforming assets, depletion of capital, and bank failures. Small banks (<$5B in assets) face a dearth of financing options as traditional private equity firms focus on larger deals.
Our strategy is to invest in small banks and thrifts that require recapitalization, platform banks that need capital to grow through FDIC failed bank acquisitions or healthy bank acquisitions. We seek to make control equity investments and significant minority investments with managerial and economic benefits. We perform significant due diligence prior to investing, then work to develop franchise attributes of the bank to produce investment returns through a public offering or sale in a 3-5 year horizon.