Customers Bank has announced its sixth venture fund investment overall. A client bank purchased a minority limited partnership interest in a financial technology (fintech) investment fund after submitting a winning bid to the Federal Deposit Insurance Corporation (FDIC).
In a statement late Wednesday, a subsidiary of Customers Bancorp said it purchased an interest in the fund for $5 million, at a discount of about 70% to the original investment cost.
“This investment further solidifies Customers Bank’s position as a leading partner in the venture community,” Sam Sidhu, president and CEO of Customers Bank, said in a statement. “It will also provide access to deal, partner and customer flows in the bank’s strategic growth areas of venture technology and startups.”
Mr. Sidhu added that investments like the one completed have increased the size of the client’s venture banking customer base and “helped source technology partners for the bank’s operational and technology roadmap.”
In June 2023, Customers Bank purchased the $631 million legacy Signature Bank loan portfolio from the FDIC. Through this acquisition and the integration of approximately 30 experienced venture bankers, the bank will continue to provide support and resources to entrepreneurs and the markets in which they operate across the United States, the bank said in a press release.
According to the release, Customers Bank’s 2023 investment and the associated stability provided to the venture and technology community will allow the bank to quadruple the portfolio of customers it serves in this space. I did.
Fintech is technology used to support or enable banking and financial services.
Customers Bank is headquartered in Charlestown Township, Chester County, and is a $22 billion-asset subsidiary of Customers Bancorp Inc., headquartered in West Reading, Berks County.
