JC Flowers buys $100m stake in Kessler Group

The financial services-focussed US buyout firm’s investment will fund the launch of a new investment arm, Kessler Capital Corporation.

US buyout firm JC Flowers has made a $100 million investment in financial services firm The Kessler Group. The investment, which gives JC Flowers a minority stake in the company, will be used to develop new marketing initiatives and to support the launch of Kessler’s new investment arm, Kessler Capital Corporation.

Jonathan Sandler, vice chairman and chief financial officer of The Kessler Group, will run the new investment arm. Before joining The Kessler Group, Sandler was a principal at Gemini Consulting, where he worked on the firm’s financial services strategy practice.

The Kessler Group services clients in the credit card, consumer finance and insurance industries. It was one of the first firms to develop the concept of affinity marketing, whereby an organisation, such as a sports team or an alumni association, sponsors a credit and receives a small portion of all of its transactions.