J.C. Flowers & Co.

J.C. Flowers & Companies

Type	Private
Industry	Private equity, Financial services
Founded	2001
Founder	J. Christopher Flowers
Headquarters	New York, New York, United States
Products	Leveraged buyout, Growth capital
Total assets	$7.9 billion
Divisions	J.C. Flowers I L.P. and J.C. Flowers II L.P.
Website	www.jcfco.com

J.C. Flowers & Co. is an American private equity investment firm, focused on investments in the financial services sector. The firm, founded in 2001,^[1] is based in New York City and run by billionaire^[2] J. Christopher Flowers, a former Goldman Sachs partner.

JC Flowers manages two private equity funds, J.C. Flowers I LP, closed in 2002 with $900 million of committed capital, and J.C. Flowers II LP, closed in 2006 with $7.0 billion of committed capital. Both funds are focused exclusively on the financial services sector. JC Flowers in Europe is led by its managing director, David Morgan.^[3]

Investments

JC Flowers' most notable investments include such financial services companies as:

• Chi-X Australia along with Chi-X Japan and Chi-Tech Hong Kong
• Enstar Group
• Shinsei Bank
• NIBC Bank N.V.
• Hypo Real Estate Group (Germany) (formerly 24.9%)
• HSH Nordbank (Germany) (26.6%)
• Fox-Pitt Kelton Cochran Caronia Waller
• Equita Sim (Italy) (50,01%)
• Eurovita (Italy) (78,19%)
• MF Global (US) (6.8%)

Other notable activity

JC Flowers has also been active in a number of high-profile contemplated transactions that did not occur.

In mid-2007, an investor group led by JC Flowers signed an agreement to purchase Sallie Mae for approximately $25 billion (USD), giving JC Flowers and Friedman Fleischer & Lowe 50.2 percent of the company. This deal fell through, however.^[4]

In late 2007, JC Flowers was one of the many companies bidding for the troubled British Bank, Northern Rock.^[5] They pulled out of the bidding in December.^[6]

On January 21, 2008, JC Flowers made an infomal bid of £4bn for Friends Provident.^[7] A revised bid of £3.5 billion was rejected^[8] On March 14, 2008, JC Flowers was reported to be in talks to buy troubled US investment bank Bear Stearns.^[9] On April 16, 2008, JC Flowers issued an offer to buy 24.9% of the shares of Hypo Real Estate Group at a price of €22.50 per share.^[10] End of 2006, JC Flowers purchased a company called PanEuroLife in Luxembourg and started to build the NewPELGroup.

In July 2010 JC Flowers announced its intention to purchase a stake in the UK's Kent Reliance Building Society^[11] and this deal was completed on 1 February 2011 with the formation of OneSavings Bank Plc.

In December 2012 JC Flowers was reported to have submitted a non-binding first-round bid for the 316 branches being re-auctioned by The Royal Bank of Scotland Group.^[12]

In July 2013, JC Flowers agreed to buy £450 million of loans belonging to struggling British bank Northern Rock.^[13]

In October 2016, JC Flowers aided the acquisition of retail stockbroker TD Direct Investing Europe by a smaller rival Interactive Investor to create the UK’s second-biggest online fund supermarket.^[14]

References

External links

• J.C. Flowers & Co. (company website)

Private equity and venture capital
Basic investment types	Buyout Venture Mezzanine Growth Secondaries Equity co-investment
History	History of private equity and venture capital Early history of private equity Private equity in the 1980s Private equity in the 1990s Private equity in the 2000s
Terms and concepts	Buyout Financial sponsor Management buyout Divisional buyout Buy–sell agreement Leveraged recapitalization Dividend recapitalization Venture Angel investor Business incubator Post-money valuation Pre-money valuation Seed money Startup company Venture capital financing Venture debt Venture round Structure Private equity firms and funds Limited partnership Limited liability company Carried interest Management fee Publicly traded private equity Business Development Company Venture capital trust Private investment in public equity (PIPE) Pledge fund
Investors	Corporations Institutional investors Pension funds Insurance companies Fund of funds Endowments Foundations Investment banks Merchant banks Commercial banks High-net-worth individuals Family offices Sovereign wealth funds Crowdfunding
Related financial terms	AUM Cap table Capital call Capital commitment Capital structure Distribution waterfall EBITDA Envy ratio High-yield debt IPO IRR Leverage Liquidation preference M&A PME Taxation of private equity and hedge funds Undercapitalization Vintage year
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