Aquiline Capital Partners has led a $35 million private placement in the Bank of North Carolina (NASDAQ: BNCN). Both common and preferred stock were priced at $10 per share. Aquiline acquired 24.9% of the bank's shareholder equity, including 9.9% of its common stock and all of its new class of non-voting preferred shares. Other investors who invested alongside Aquiline acquired an aggregate 7.4% stake through the purchase of common stock. Proceeds from the offering will be used to fund the bank's expansion in North Carolina and in nearby states.
In the last three and a half years, 46 PE investors have invested in 54 U.S. regional banks, according to the PitchBook Platform. The battered industry appears to be particularly popular with PE investors this year. There have already been 16 completed or announced deals in 2010, after 18 in all of 2009, 12 in 2008 and 16 in 2007. Florida and California are the most popular headquarters locations for target banks with 13 and 9 banks, respectively, and 12 investors have made at least a second investment in the industry during the same time period. The most active investors in the industry include Stone Point Capital (5 deals), Lightyear Capital (3), J.C. Flowers (3), Keefe Bruyette & Woods (3) and BankCap Partners (3).