Customers Bank purchases FDIC interest in fintech investment fund
Customers Bank has announced its sixth overall venture fund investment. After submitting a winning bid to the Federal Deposit Insurance Corp. (FDIC), Customers Bank purchased a minority limited partnership interest in the financial technology (fintech) investment fund.
In its announcement late Wednesday, the Customers Bancorp subsidiary said it purchased the interest for $5 million in the fund at an approximate 70% discount to the original cost of investment.
“This investment further solidifies Customers Bank’s position as a leading partner to the venture community,” Sam Sidhu, Customers Bank president and CEO, said in a statement. “It also provides access to deal, partner and client flow in the venture tech and startup sectors, both areas of strategic growth for the bank.”
Sidhu added that investments like the one just completed have increased the size of Customers’ venture banking client base, “and helped source technology partners for the bank’s operational and technology roadmap.”
In June 2023, Customers Bank purchased a $631 million legacy Signature Bank loan portfolio from the FDIC. Through that purchase — as well as the integration of approximately 30 highly experienced venture bankers — the bank continues to support and provide resources to entrepreneurs and the markets they operate in across the U.S., the bank said in a press release.
Customers Bank’s 2023 investments, and the related stability provided to venture and tech communities, have enabled the bank to quadruple its portfolio of clients served in the space, according to the release.
Fintech is technology that is used to support or enable banking and financial services.
Customers Bank has its headquarters in Charlestown Township, Chester County, and is the $22 billion asset subsidiary of Customers Bancorp Inc., which is headquartered in West Reading, Berks County.
