Patriot Financial Manager LP, the Philadelphia-based bank investment fund set up by veteran local lenders James J. Lynch and W. Kirk Wycoff with partner Ira Lubert in 2007, said today that it grossed $9.3 million from its initial sale of shares in the March 31 initial public stock offering of (IPO) of Square 1 Financial Inc., a Durham, N.C.-based that specializes in servicing venture capital firms across the U.S.
Square 1 is one of just 15 U.S. banks to go public since the 2008 financial crisis, says Michael Foley, an analyst at Patriot. "Of these 15 IPOs, Square 1 had the highest offering price/tangible book value ratio," a popular bank-stock value metric, he told me. That's "a testament to the quality of the company and the investment community's interest
Square 1 "is very much like Silicon Valley Bank," a California-based company that finances and raises deposits from venture capital firm and venture-capital-backed companies, "just a smaller size," Wycoff, the Patriot partner, told me.
Patriot sold a total of 5.8 million shares of Square 1 (Nasdaq syumbol: SQBK) at $18/share on March 31, and still holds 3.2 million shares and 750,000 share warrants, worth around $76 million at Square 1's first-day closing price of $20.10/share.