Bain Capital, JC Flowers back Co-operative Bank

The two firms bought 10% of the company's A shares and 12% of its B shares.

Bain Capital and JC Flowers will become investors in the bank alongside its five other current financial sponsors, Silver Point Capital, GoldenTree, Anchorage Capital, Cyrus Capital and Invesco, which together own around 85% of the bank.

The company has recently announced that it made a £7.2m pre-tax profit in Q1 2021, after a £27m loss a year earlier. The lender's restructuring is ahead of schedule and the bank is expected to return to sustainable profitability in 2021, according to Co-operative Bank's CEO, Nick Slape.

Previous funding
The bank was initially fully owned by the Co-operative Group, which was itself controlled by customers and other co-operatives. In 2013, the bank revealed a £1.5bn hole in its finances, which led to the sale of some of the shares to a group of hedge funds in 2014.

In 2017, a turnaround deal including a rescue package of around £700m was led by hedge funds Silver Point Capital, GoldenTree, Anchorage Capital, Blue Mountain and Cyrus Capital. They injected £250m's worth of new funds into the loss-making bank and £433m in bonds to be converted to shares.

The Co-operative group ownership was reduced to around 1% of the recapitalised organisation, which has a two-tier structure of A and B shares.

Company
Headquartered in Manchester, the Co-operative Bank is a retail and commercial bank with a customer-led ethical policy incorporated into the bank's articles of association.

It provides personal banking services including current accounts, credit cards, online and mobile banking, personal loans, and savings accounts.

People
Bain Capital – Fabio Longo (managing director).
JC Flowers – Tim Hanford (head of Europe).
The Co-operative Bank – Nick Slape (CEO).

Advisers
Equity – Macfarlanes (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Expansion
• UK / Ireland
• Financials
• Bain Capital
• JC Flowers
• United Kingdom