NYCB Raises More Than $1 Billion in Equity Led by Steven Mnuchin’s Firm
March 6, 2024
Source:
New York Community Bancorp, Inc. announced a $1 billion investment across several investors. This includes contributions of $450 million from Liberty Strategic, $250 million from Hudson Bay, and $200 million from Reverence. The company will appoint four new directors to its board, including Liberty Strategic’s Steven Mnuchin. Joseph Otting will become the new CEO in addition to joining Mnuchin on the Board. In the press announcement, Mnuchin emphasized the investment’s importance for the bank’s credit risk profile, while others highlighted the strategic partnership’s positive impact on the bank’s growth trajectory. The new investor group believes the management team has a great opportunity to reposition the company and return to growth. Kaulig Capital is a partner in Liberty Strategic’s first fund, and this investment marks the sixth transaction in the fund.
