Blackstone Acquires Stake in Citrin Cooperman Amid Challenges for Amerant Bancorp

Miami Financial Landscape

News Summary

Miami’s financial scene is buzzing as Blackstone acquires a stake in Citrin Cooperman Advisors LLC, enhancing its presence in the South Florida market. This significant move contrasts sharply with Amerant Bancorp’s recent reported loss of $12.5 million due to a mortgage portfolio sale. As both companies navigate their respective circumstances, the broader implications for Miami’s financial landscape are unfolding, presenting opportunities and challenges alike.

Exciting Developments in Miami: Blackstone’s New Move and Amerant Bancorp’s Recent Loss!

Miami is buzzing with news as Blackstone, one of the largest private equity firms in the world, announces its plan to acquire a stake in Citrin Cooperman Advisors LLC, a well-respected accounting firm that has called New York home for 46 years. This acquisition marks a significant milestone not just for Citrin Cooperman but also for the South Florida financial landscape.

Blackstone Makes a Big Move

Blackstone recently agreed to purchase a percentage of ownership from New Mountain Capital, though the exact price remains under wraps. As of January 7, the firm now owns approximately 40% to 45% of Citrin Cooperman, which carries an impressive valuation of $2 billion. This includes a strong presence in the South Florida market, where Citrin Cooperman employs 42 local CPAs and boasts annual billings near $30 million.

Located mainly in **Coral Gables**, Citrin Cooperman is not shy when it comes to accolades—ranking 11th in the South Florida Business Journal’s list of accounting firms by CPAs and 10th by billings. The firm has been on a growth spree too, recently expanding its footprint by acquiring local firm Keefe McCullough & Co. in February 2024. This shows that Citrin Cooperman is not just diving deep into the Miami market but swimming very successfully.

Challenges for Amerant Bancorp

Amerant Bancorp recently made headlines for all the wrong reasons. The bank reported a hefty loss of $12.5 million stemming from the sale of a loan portfolio that involved $71.4 million in mortgages, ultimately selling for just $58.9 million. This loss translates into a significant discount of 17.5%, an unfortunate headline that reflects broader challenges in the banking sector.

The mortgage portfolio was made up of 323 residential loans, primarily aimed at business and investment properties, with an average interest rate of 7.13%. Alongside the mortgage sale, Amerant also offloaded operations in Houston, causing a notable decrease in their total assets—dropping by $500 million down to $9.9 billion by December 31. This decline sees Amerant dipping below the $10 billion mark, a threshold they are eager to cross again soon.

Looking Ahead

Amerant Bancorp doesn’t seem to be slowing down either. The bank plans to roll out its full earnings report for the fourth quarter and the entire year later this month. Amerant’s leadership, particularly Chairman and CEO Jerry Plush, has acknowledged facing what he terms an “identity crisis” since taking the helm in 2021. Established in 1979, Amerant is now in a phase of recalibration.

What’s more, Amerant has noticeably ramped up its engagement with local sports franchises like the Miami Heat and Tampa Rays in an effort to boost brand awareness. Since the end of 2020, Amerant has seen an incredible 37% asset growth, thanks to strategic partnerships and its focus on enhancing market share, which has increased from 1.98% to 2.2% in Miami’s deposit market.

Miami’s Financial Landscape: A Mixed Bag

As we watch these two firms navigate the waters of opportunity and challenge, the financial landscape in Miami certainly feels alive with action. With Blackstone’s investment shining as a beacon of growth and Amerant aiming to recover from its recent losses, there’s much to keep an eye on in this vibrant city.

So, grab your popcorn, sit back, and let’s see how these unfolding stories will shape Miami’s financial future!