Capital Z strives to be the first call for financial services firms facing complex challenges or growth opportunities.
Capital Z believes specialization is critical to success in financial services investing, since the industry possesses a number of unique dynamics:
- Typical LBO structures cannot be employed
- Highly regulated industry requires full-time focus
- Largest sector of US economy by corporate revenue cannot be properly covered by generalists
- Complicated business models with specialized accounting/valuation methodologies require significant expertise to evaluate
Within targeted financial services sub-sectors, Capital Z analyzes current trends, develops actionable investment theses and creates strategies for originating and evaluating opportunities. Capital Z develops original investment ideas through its detailed research and analysis in order to generate proprietary investment opportunities. more +
Capital Z also uses its industry expertise and reputation to execute complex transactions that require creativity, rigorous due diligence, and extensive negotiation and documentation. This focus has allowed it to complete many innovative transactions, such as providing the first corporate capital to Lloyd’s of London; structuring the first sponsored spin-off in the Financial Services Industry; sponsoring a first-of-its-kind demutualization in the U.K. insurance market; and completing the first simultaneous insurance company startup and initial public offering. less -
In partnering with management teams, Capital Z looks to make long-term capital investments to support the strategic and financial objectives of its companies. The target investment size ranges from approximately $25 million - $75 million from our committed capital base. With the strength and support of our co-investor base, Capital Z is able to execute significantly larger transactions.
Our sector expertise allows us to work closely with portfolio companies to maximize shareholder value. Management teams typically view Capital Z as an important resource and a value-adding partner over the life of an investment, which typically ranges from four to seven years. more +
Capital Z's network of contacts across the financial services industry can be invaluable for management teams as they look to expand their businesses and execute on strategic objectives.
In many sub-sectors of the financial services industry, Capital Z's relationships with key members of ratings agencies and regulatory bodies can be helpful in navigating those processes with minimum disruption. less -