Grandpoint was one of several investments pursued by Stone Point to benefit from the substantial cost savings and earning accretion generated by consolidation in the commercial banking industry.
During the period of financial distress and depressed valuations surrounding the 2008-2009 Financial Crisis in the United States, Stone Point proactively identified several geographic regions in which bank consolidation was likely to become particularly active and profitable for acquirers. One of those regions was southern California and Arizona. After meeting with several dozens of banks and management teams based in the area, Stone Point chose to partner with Grandpoint Chairman & CEO Don Griffith to form Grandpoint as an acquisition vehicle primarily targeting the greater Los Angeles marketplace. Prior to partnering with Stone Point, Don had successfully recapitalized and operated a series of commercial banks, most of which were based in his team’s home state of California.
After committing to an investment in Grandpoint, Stone Point worked closely with Don to raise additional co-investor capital, formalize a business plan, and receive required regulatory approvals. Over the subsequent seven years, Grandpoint deployed investors’ capital through eleven bank and branch acquisitions, to ultimately develop a franchise with $ 3.3 billion of assets and 17 branch locations across greater Los Angeles, San Diego and selected markets in Arizona.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.