The Chicago private-equity firm GTCR Golder Rauner LLC has pledged to invest $100 million in another Chicago company, PrivateBancorp Inc., to help it expand.
The investment, announced Tuesday, would cover half of the $200 million PrivateBancorp is seeking to raise to beef up its commercial and commercial real estate lending in its six major markets, including Chicago, St. Louis, and Atlanta.
In addition, Mesirow Financial Holdings Inc., through its affiliated entities, has pledged to invest $40 million.
The $4.5 billion-asset Private Bancorp intends to raise the remaining $60 million through a private placement. The securities will be sold at the equivalent of $28.71 per common share, PrivateBancorp's closing bid price Friday.
This month the $4.5 billion-asset PrivateBancorp hired Larry Richman, the former president and chief executive of LaSalle Bank, as its president and chief executive. Since the end of September, PrivateBancorp has hired 34 commercial banking executives, many from LaSalle, which Bank of America Corp. bought last month.
By late Wednesday, PrivateBancorp's shares had risen more than 5% from Tuesday's close, to $29.77.
