Dime Adds Fund Finance Banking Vertical

Rhea-AI Summary

Dime Community Bancshares (NASDAQ: DCOM) has announced the launch of a new fund finance vertical as part of its growth strategy. The company has appointed Michael Watts, former Senior Vice President at East West Bank, as Group Leader and Head of Fund Finance. Based in Manhattan, the new vertical will provide customized fund-level financing to the private equity industry.

This expansion follows Dime's successful establishment of Healthcare and Not-for-Profit verticals. The bank reported significant growth in Business loans, exceeding $450 million for the twelve-month period ended March 31, 2025. The Fund Finance vertical is expected to contribute to future growth once operational.

Insights

Banking Industry Analyst

Dime's strategic expansion into fund finance diversifies revenue streams, leverages existing commercial momentum, and establishes specialized expertise in private equity financing.

Dime's launch of a dedicated fund finance vertical represents a strategic expansion of their commercial banking capabilities, continuing their pattern of targeted growth through industry specialization. This follows their previously successful vertical buildouts in Healthcare and Not-for-Profit sectors, demonstrating a systematic approach to diversifying their business lines.

The bank has shown strong commercial momentum, with business loans growing by over $450 million for the twelve-month period ended March 31, 2025. While this new fund finance vertical will take time to contribute to results, it positions Dime to capture specialized business in the private equity ecosystem.

By recruiting Michael Watts, an experienced banker from East West Bank, Dime is acquiring the specialized talent necessary to provide customized fund-level financing solutions. Basing this operation in Manhattan strategically places it within a major private equity hub, facilitating relationship-building with potential clients.

This vertical expansion aligns with industry trends where mid-sized regional banks increasingly focus on specialized niches rather than competing directly with larger institutions across all services. The relationship-oriented nature of fund finance typically creates opportunities for additional banking services with private equity firms and their portfolio companies.

For Dime, this represents a calculated move to enhance their competitive positioning through specialized expertise, potentially supporting stronger client relationships and expanded service opportunities throughout the private equity ecosystem.

Private Equity Expert

Dime's entry into fund finance adds another specialized banking option for PE firms, potentially enhancing competition and service quality in this growing niche.

Dime's entry into the fund finance space introduces another specialized banking option for private equity firms seeking tailored financing solutions. This move comes as fund finance continues to gain importance in the private capital markets, with PE firms increasingly utilizing subscription lines, NAV-based facilities, and other specialized products to optimize capital deployment and operations.

The bank's stated intent to provide "bespoke solutions" to private equity firms and portfolio companies suggests a flexible approach rather than standardized products. This customization capability could prove particularly attractive to middle-market private equity firms that may receive less personalized attention from larger financial institutions.

Strategically basing this vertical in Manhattan positions Dime directly within a major private equity hub, facilitating relationship development with potential clients. The appointment of Michael Watts from East West Bank demonstrates Dime's commitment to bringing established expertise rather than building capabilities from scratch.

For private equity firms, having additional banking options for fund-level financing can enhance negotiating leverage and access to competitive terms. The development of specialized verticals by regional banks like Dime represents a broader trend of financial institutions developing deeper expertise in private markets, recognizing the significant growth in private capital and the specialized banking needs this creates.

This expansion follows Dime's $450 million growth in business loans over the past year, indicating substantial momentum in their commercial lending operations that could potentially support this new specialized initiative.

Michael Watts Appointed Group Leader and Head of Fund Finance

HAUPPAUGE, N.Y., May 05, 2025 (GLOBE NEWSWIRE) -- As part of the continued execution of its growth plan, Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), announced the launch of a new fund finance vertical. Led by Michael Watts, the Fund Finance vertical will provide customized fund-level financing to the private equity industry and expand Dime's coverage across this ecosystem. Watts, who will be based in Manhattan, was most recently a Senior Vice President at East West Bank.

Stuart H. Lubow, President and Chief Executive Officer of Dime, said, "We are committed to growing our coverage, and position Dime for success, as we respond to the growth in the Fund Finance space. The addition of this vertical is yet another example of targeted strategic investments to expand our commercial expertise and capabilities. For the twelve month period ended March 31, 2025, Dime grew Business loans by over $450 million and we expect Fund Finance to contribute to future growth once we get the vertical up and running.”

The expansion into Fund Finance, which follows the previous successful buildouts of a Healthcare vertical and a Not-for-Profit vertical, is part of Dime's recent geographic and vertical expansion. Dime is focused on expanding capabilities and industry-specific coverage expertise by recruiting talented individuals from a variety of financial institutions.

"Dime has strong momentum and is firmly establishing diversification in its business lines. Within the Fund Finance space, there is an opportunity for Dime to help private equity firms and their portfolio companies with bespoke solutions. I’m looking forward to Michael being part of Dime's growth and leading the Bank's efforts in this new vertical," said Tom Geisel, Dime’s Senior Executive Vice President of Commercial Lending.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14 billion in assets and the number one deposit market share among community banks on Greater Long Island ⁽¹⁾.

Dime Community Bancshares, Inc.
Investor Relations Contact:
Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
Phone: 718-782-6200; Ext. 5909
Email: avinash.reddy@dime.com

¹ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

FORWARD-LOOKING STATEMENTS

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated.

FAQ

What is Dime Community Bank's (DCOM) new fund finance vertical?

Dime's new fund finance vertical is a business unit that will provide customized fund-level financing to the private equity industry, led by Michael Watts and based in Manhattan.

Who is leading DCOM's fund finance vertical?

Michael Watts, former Senior Vice President at East West Bank, has been appointed as Group Leader and Head of Fund Finance at Dime Community Bank.

How much did Dime Community Bank's business loans grow in 2025?

Dime grew its Business loans by over $450 million for the twelve-month period ended March 31, 2025.

What other verticals has Dime Community Bank (DCOM) previously launched?

Dime has previously successfully launched Healthcare and Not-for-Profit verticals as part of its expansion strategy.