EJF Financial Services Fund LP

EJF Financial Services Fund is a fundamentals-driven strategy focused on the financial services sector. The Fund capitalizes on market opportunities, including those which stem from regulatory changes within the financial services industry. 

Investment Strategy

Compelling Bank Valuations

Many U.S. community bank valuations today trade slightly above tangible book value, and near historically low relative P/E Ratio vs. the S&P 500 Index.

Strong Bank Balance Sheets

U.S. bank capital levels as of 6/30/24 are high, with an average of 9.25% tangible equity compared to 6.7% at the end of 2008. Tangible book value and capital levels are likely to rise in a declining interest rate environment.

U.S. Bank M&A Activity

U.S. bank M&A activity hit historic lows over the past four years, leading to pent-up demand. Since the Great Financial Crisis, ~5% of the U.S. banks have been consolidated annually within the industry compared to an average of only 2.89% over the last four years.

The Fund’s investment focuses on owning banks that we believe are attractive M&A candidates.

To learn more or to share an investment opportunity, contact us.

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Overview