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Castle Creek Capital

PE

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Investment thesis

Castle Creek Capital is an alternative asset management firm focused exclusively on the community banking industry. The firm seeks to identify and source latent value in community banks and financial service companies, unlocking that value through operational expertise, partnership, and incentive alignment. As stated on their website: 'Our value-based investment philosophy is aimed at sourcing and investing in undervalued assets where we can identify and unlock latent value. The lack of meaningful competition allows for inefficient asset pricing. We proactively seek assets we want to own; we don't participate in auctions.' With over 100 combined years of industry experience—five decades operating banks and another five investing in them—Castle Creek's lead involvement with portfolio companies is typically executed through board representation and direct partnership with senior executive teams. Their dedicated Compass Operating Partners team drives operational improvements across six core areas: investment due diligence, acquisition integration, expense reduction, revenue enhancement, contract negotiation, and technology implementation, having generated nearly $1.5 billion in lifetime profitability improvements across financial services companies.

Notable quotes

We are pleased to be adding outstanding talent to our team when others are retracting. These additions further our mission to be the premier partner and capital provider to community banks and financial service companies.

Tony Scavuzzo · Castle Creek Capital press release – Team Expansion Announcement · 2024-02-13

We are excited for Aditi's contribution to our investment process and analysis. Moreover, as we enhance our operational value-add at portfolio companies, we look forward to growing our relationship with Compass Operating Partners under Chris' leadership.

Sundeep Rana · Castle Creek Capital press release – Team Expansion Announcement · 2024-02-13

As community banks face a challenging operating environment due to higher for longer rates and heightened regulatory scrutiny, private equity is positioned to fill the capital need.

Tony Scavuzzo · S&P Global Street Talk, Episode 118 – PE Looking to Fill Community Banks' Capital Need Created by Higher for Longer Rates · 2023-10-26

Team

John Eggemeyer

Managing Principal

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Tony Scavuzzo

Managing Principal

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David Volk

Managing Principal

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Sundeep Rana

Managing Principal

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Spencer Cohn

Principal

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Michael Thaden

Director

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Recent investments

CompanyRoundSizeDate
FirstSun Capital BancorpSecondary equity acquisition$40m2025
Blue Ridge Bankshares, Inc.Private Placement$150m2024-04
Blue Ridge Bankshares, Inc.Private Placement$12m2024-06
Spend Life Wisely CompanyPrivate Placement$81m2022-01
Third Coast Bancshares, Inc.Private Placement – Convertible Preferred Stock$69m2022-09
Central PaymentsGrowth Equity$30m2022-08
Northpointe Bancshares, Inc.Private Placement$25m2019-06
Bank of Idaho Holding CompanyPrivate Placement$15m2019-07
Enterprise Financial Services CorpPrivate Placement
Bridgewater Bancshares, Inc.Private Placement

Frequent co-investors

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