First Bank is offering new options for commercial lending, the community bank announced Sept. 28, with the addition of servicing for private equity funds.
The Hamilton-based institution said it offers capital call lines of credit, working capital lines of credit and financing for private equity firms and their portfolio companies.
According to First Bank, its capital call line of credit provides working capital to buyout firms to facilitate speed and produce better equity returns. It’s typically used to create a bridge between acquisition timing and receipt of incoming capital from investor groups. The working capital line offers private equity groups funding for general purposes, like short-term needs and payment obligations. At the end of the cycle, acquisition financing can help with purchases of portfolio companies or for banking services for portfolio companies — as First Bank pointed out, those companies also have traditional commercial banking needs like deposits and cash management services.
The new Private Equity Banking division is led by Senior Vice President/Team Leader Ramzi Dagher and Vice President/Relationship Manager Adam Regnery.
According to the bank, support for entrepreneurs is baked into its history.
Ryan was part of an investment group that recapitalized First Bank with $20 million in late 2008. Since its first year in business, just a year before that in 2007, the bank said it’s delivered a 41% compound annual growth rate in total assets. As of June 30, 2022, the most recent quarterly filing, that figure was $2.57 billion.
Editor’s note: This story was updated at 2:58 p.m. ET on Sept. 28, 2022, to include the names of the leaders for the new Private Equity Banking divison.