Bank Leumi USA Announces Closing of Strategic Investment by Endicott Management and MSD Capital

Bank Leumi USA reported the closing of the strategic investment in Bank Leumi le-Israel Corporation (“BLC”), the U.S. bank holding company of Bank Leumi USA. The strategic investment, originally announced on January 22, 2018, is being led by Endicott Management Company (“Endicott”) and includes MSD Capital, L.P. (“MSD Capital”), and together represents an aggregate of 15% of the shares of BLC, valuing the Bank at just under $1 billion.

Bank Leumi USA, which has been operating in the United States for over 60 years, is a relationship-driven, boutique bank servicing both high-net-worth and middle market commercial banking clients in a variety of sectors and geographic markets.

Founded in 1996, Endicott is a leading U.S. investment firm whose main field of expertise is investment in financial institutions, particularly banks. Wayne Goldstein, one of two founding partners of Endicott, will be appointed as a Board Member of both Bank Leumi USA and BLC.

MSD Capital is a private investment firm, established in 1998 to manage the assets of Michael Dell, founder of Dell Technologies, and his family.

This investment brings significant strategic value to Bank Leumi USA and is the next step in the successful implementation of its new business and operational plan undertaken during the last four years under the leadership of Bank Leumi USA’s President & CEO, Avner Mendelson.  This transaction enables the Bank to take further steps in its continued growth.

“I am glad that this strategic investment has received the regulatory approvals needed to close.  Our focus now turns to the next phase of our growth plans. With the strategic value from our new investors, coupled with the continued support from Bank Leumi in Israel and our incredible Board of Directors, I have no doubt about our ability to realize our vision and business objectives. Wayne Goldstein and Rob Usdan from Endicott, along with the team from MSD Capital, are excellent partners and add the requisite value to our business strategy and our clients through their considerable experience,” stated Mendelson.

Sandler O’Neill & Partners, L.P. served as financial advisor to Bank Leumi and Kilpatrick Townsend & Stockton LLP provided legal advice. Endicott was advised by the law firm Schulte Roth & Zabel LLP, and MSD Capital was advised by the law firm Wachtell, Lipton, Rosen & Katz.

About Bank Leumi USA

Bank Leumi USA is a full-service commercial and private banking institution providing financial services to middle market firms, as well as a full range of private banking solutions to domestic and international clients. Leumi also offers a broad range of securities and insurance products through its brokerage subsidiary, Leumi Investment Services, Inc. More information about Bank Leumi is available at www.leumiusa.com.

About Endicott Management Company

Endicott Management Company, founded in 1996 by Wayne K. Goldstein and Robert I. Usdan, has managed a group of private investment partnerships primarily focused on equity investments in financial institutions, with a further emphasis on U.S. banks.  Since 2009, Endicott’s Opportunity Funds have owned concentrated positions in a portfolio of banks and bank holding companies, many of which Endicott has worked with to implement strategic and capital markets strategies to enhance shareholder value.

About MSD Capital, L.P.

MSD Capital, L.P. is the private investment firm that was established in 1998 to exclusively manage the capital of Michael Dell and his family. The firm utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities.  MSD Capital’s team operates from the firm’s offices in New York, West Palm Beach and Santa Monica.