PE Consortium Explores EverBank Sale Three Years After Acquisition
A consortium of five private equity firms is exploring a sale of EverBank three years after acquiring the Florida-based digital bank from TIAA. The process has been underway for several months, according to a report by the Wall Street Journal cited in Private Equity Wire.
Ownership and Initial Transaction
Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management acquired EverBank in 2023. Terms of that transaction were not disclosed.
EverBank operates predominantly through digital channels while maintaining several dozen branches, primarily in Florida and California. At the end of June the bank held approximately $47bn of assets, ranking it the 57th-largest US bank holding company, with deposits of roughly $38bn.
Strategic Options Under Review
The lender is considering several strategic options, including a potential sale or merger. An initial public offering could serve as an alternative if a buyer cannot be secured. Investment banks and advisers are now involved in the process.
Differences over the bank’s strategic direction have created tensions among the five sponsors and within EverBank’s boardroom, according to the same report.
Recent Transactions and Operations
In 2024 EverBank agreed to acquire Sterling Bank & Trust for $261m, adding 25 branches in California and one in Queens, New York. The ownership consortium had initially pursued a strategy of expanding through further bank acquisitions.
Under the current approach, EverBank has pursued rapid balance-sheet growth, including greater investment in its mobile banking offering and expansion of high-yield savings products. The bank has also significantly increased lending to non-bank financial institutions, including private credit firms, real estate investors and insurance companies.
EverBank stated it has improved profitability, expanded its retail franchise and grown its commercial banking business. The bank said it has consistently evaluated a range of options for its future, including acquisitions, a sale or merger and a potential IPO, while remaining confident in its long-term growth prospects.
Market Environment
An exit after three years would occur as US banks attract renewed interest from financial sponsors and strategic buyers following regulatory changes intended to make it easier for private equity investors to participate in bank transactions, according to Private Equity Wire.
