Investing in the Banking Sector

How can private equity investors make money in the banking sector? It first helps to have deep industry expertise, advises W. Kirk Wycoff, Managing Partner of Patriot Financial Partners, a Philadelphia-based firm that specializes in investing in small- to medium-sized community banks.

In a fascinating conversation with Privcap, Wycoff gives an authoritative overview of the state of the banking sector today, with its 8,000 individual bank holding companies. Wycoff shares his analysis on how banks are being valued in the current market, why more banks have not failed, why consolidation has not taken place to the degree once expected, the paths to exit for bank investors, how new regulations will hit small banks hardest, and why finding sophisticated CEOs is difficult at Patriot’s targeted end of the banking spectrum.