Since our founding, we have been guided by a spirit of integrity, commitment, and discipline. CapitalSource finds its roots in 1993 when Company Founder and Chairman, John Delaney, started HealthCare Financial Partners (NYSE: HCF). Under his leadership, HCF provided custom financing to healthcare service companies and went public within three years. HealthCare Financial Partners was sold in 1998 for $500 million—three times its IPO price.
In 2000, Delaney and Jason Fish, a partner at Farallon Capital Management, saw a market opportunity for the establishment of a broad-based, middle-market commercial finance company. Building upon the business model that brought Delaney earlier success, he and Fish set out with an initial capitalization of over $500 million (at the time, the largest private capitalization for a finance company) to expand beyond healthcare lending to other focused industries.. With a clean slate, optimal market conditions, ample capital, and an experienced management team, CapitalSource executed its business model emphasizing efficient execution, deep industry expertise, and a disciplined approach to credit and underwriting.
In 2003 CapitalSource completed its own IPO and began trading on the New York Stock Exchange (NYSE) under the symbol, CSE.
After a period of significant growth, the recession effectively eliminated the wholesale funding model which CapitalSource utilized since its founding. The Company successfully managed though the economic crisis by diversifying and strengthening its funding platform – a fundamental strategic goal for the company as far back as 2005. In July 2008, CapitalSource Bank was formed via the acquisition of the bank branches and deposits of Fremont Investment and Loan.
With the successful pairing of the CapitalSource commercial lending franchise and the formation of CapitalSource Bank, our bank branches now stand alongside our commercial lending platform, and together, continue to serve our customers with the same foundation of discipline, integrity, and industry expertise.
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