News & Analysis

driven by the PitchBook Platform
Woman paying in a check at the bank

Featured image by dardespot/Getty Images

PE Exits

Northpointe Bank files for IPO as PE-backed listings tick up

The Castle Creek-backed regional bank moves toward an IPO, as more PE-backed companies find exits in the public markets.

Northpointe Bank, a Michigan-based regional bank, filed to go public Thursday, in another sign that PE-backed IPOs are on the upswing.

Castle Creek Capital, a PE firm focused on community banks, originally paid $25 million for a 27% stake in Northpointe in 2019.

Private equity is starting to reengage with the public market in its search for liquidity for its portfolio companies. According to PitchBook data, PE-backed IPOs accumulated $41 billion in exit value last year—a strong comeback from 2023, with only $8.2 billion in exits.

“The Northpointe IPO represents another sponsor joining the backlog of PE-backed companies that have filed for an IPO,” said PitchBook PE analyst Kyle Walters.

Banks, in particular, are positioning themselves for a rebound on the public markets, driven by shifts in political and economic landscapes.

“There are assumptions with the new administration that there will be a permissible attitude on banking regulation. Publicly traded bank stocks and valuations were quite healthy, and regulations are favorable,” said Morningstar equity analyst Michael Miller.

Suryansh Sharma, a financial services equity analyst at Morningstar, added, “The banking sector is currently experiencing strong profitability. A scenario where rates remain high and the economy remains strong is ideal for banks. A confluence of these factors and strong sentiment has led to a rally in bank stocks. In our opinion, bank stocks are richly valued, thereby setting a conducive environment for smaller banks to go public and raise capital.”

Northpointe Bank, founded in 1999, offers a range of banking and home lending products.

Featured image by dardespot/Getty Images

Learn more about our editorial standards.

  • Janelle Bradley
    Janelle Bradley is a New York-based private equity reporter covering leveraged buyouts for PitchBook News. Previously, she covered private credit at With Intelligence (formerly Pageant Media). Janelle is a graduate of the City University of New York Brooklyn College.
Join the more than 2 million industry professionals who get our daily newsletter!

    I agree to PitchBook’s privacy policy