Criterion Capital delivers, as agent or through special purpose vehicles, stabilizing and growth equity capital to publicly traded U.S. banks and bank holding companies for two primary purposes: supporting the acquisition of under-performing banks/BHCs, including through the FDIC resolution process, and providing capital that enables balance sheet restructuring including primarily the realization of losses on Available For Sale and reclassification of Held to Maturity securities. 

Criterion encourages BHCs/banks with long-duration securities portfolios and high loan to deposit ratios to consider raising sufficient tangible and common equity tier 1 capital to strengthen the balance sheet and significantly increase earnings power in a higher interest rate environment expected to last for several years. Criterion’s true north is the high positive correlation (the “criterion”) between forward estimates of ROATCE and a bank’s P/TBV which can be achieved in part through astute capital management.

Criterion helps increase Total Shareholder Return at portfolio companies through constructive engagement, encouraging CEOs/boards to focus on key.

• building a disciplined strategic management framework

• investing in higher growth, differentiated lines of business

• establishing an efficient and lower cost capital stack to support a thoughtful risk-weighted asset profile

• aligning management and shareholder interests via C-suite level long-term incentive compensation

• nurturing the bank’s cultural core

• strengthening regulatory relationships at every level

• among smaller banks, cultivating increased analyst coverage (both quality and volume) and improving investor communications