The Company plans to use the capital for strategic growth purposes which may include both organic and acquisition opportunities. Castle Creek Capital, based in Rancho Santa Fe, California, is the sole investor in this transaction.
"The bank has been committed to a growth strategy since its inception in 2005. This significant influx of capital provides us with new opportunities to escalate this strategy and continue expanding our footprint in the Twin Cities," explained Chairman and Chief Executive Officer, Jerry Baack. "With this level of funding we will be able to immediately meet the emerging financing needs of our increasing client base."
Bridgewater Bancshares has fueled past growth by raising capital through its existing client network and shareholder base, which includes 197 local entrepreneurs. The original capital raise in 2005 funded the bank’s launch with $10 million. Subsequent capital raises, dating back to 2008, have generated a total of $15 million.
"We have never had a difficult time raising capital, but an investment from Castle Creek elevates Bridgewater Bank to a new level. Bringing in a private equity investor with a National reputation, even before we reach ten full years of operation, is a true testimony to the quality of our franchise and a vote of confidence in our business model," said Baack. "We suspect that our rapid and unparalleled growth, sustained profitability and performance are some of the factors that drew their attention. While they have invested in several banks across the nation, we are their first investment in Minnesota."
