FirstBank
First Bank is a Romanian universal bank operating a nationwide branch network with a large deposit base lending across all customer segments (retail, SME and corporate).
Investment Thesis:
- The acquisition price consisted of a discount to tangible book value
- A positive macroeconomic backdrop with Romania as the third-largest economy in CEE and the fastest growing economy in the European Union at the time of entry
- An opportunity to transform and modernize the bank under the leadership of an experienced and motivated management team
- The highly fragmented Romanian banking market presented consolidation opportunities for value creation and exit opportunities
Value Add:
- Built a best-in-class team and culture during a period of significant change and upheaval
- Created scale through M&A. Completed the Leumi add-on
- Overhauled core systems and process changes through extensive development in technology and leaning into a slimmed-down structure
- Finalized cleanup of legacy portfolio, built local risk management functionality (previously run out of foreign parent HQ), cleaned up data storage and systems to streamline reporting
Key Details
Location:
Bucharest, Romania
Fund:
JCF IV
Subsector:
Banks
Investment Date:
June 2018
Realization:
October 2023
