Belvedere Capital forms partnership to acquire Texas Banks

The San Francisco-based private equity firm has partnered with Green Bancorp and Redstone Bank to acquire new banks in Texas.

Belvedere Capital Fund II has formed a partnership with Green Bancorp and Redstone Bank to acquire banks in Houston and other metropolitan areas in Texas.

The goal of the partnership is to build a banking franchise that will stretch across the state. No financial terms of the agreement were disclosed.

The partnership announcement comes shortly after Green Bancorp agreed to acquire Redstone. After the merger, Belvedere’s investment will represent approximately 37 percent of the combined bank, which will be collectively known as Green Bancorp.

Belvedere is a private equity firm that invests in community banks and related financial services in the US. Since its founding in 1994 the firm has purchased or invested in 11 community banks.

The firm’s second fund closed at $150 million June 30. This is the fourth investment for the fund. The first, First Century Bank, based in the Century City area of Los Angeles, has already been exited. The fund has also invested in specialty finance company Hometown Commercial Capital and Presidio Bank, which has been in development and will soon open branches in San Francisco.

The firm said it will assist Green Bancorp in seeking additional acquisitions of community banks in Houston and other metropolitan Texas areas, as well as attracting some commercial loan officers for Green Bancorp’s planned network of branches throughout Houston.