Davis Polk advised FBR Capital Markets in connection with the acquisition by AloStar Bank of Commerce of substantially all of the assets, and the assumption of the liabilities of, Nexity Bank, Birmingham, Alabama from the FDIC. AloStar was capitalized with $160 million of new equity from four private equity funds and the new management team. Nexity was a bankers’ bank with approximately $800 million in assets. FBR Capital Markets acted as a financial adviser to AloStar.

AloStar will continue to engage in the correspondent banking business, but its primary business will be asset-based lending to small- and mid-cap companies on a nationwide basis. Both the nature of its ownership (four private equity funds) and its business plan presented quite novel and difficult issues. 

The Davis Polk financial institutions team included partners John L. Douglas and Luigi L. De Ghenghi and associates Lina E. Ziurys and Andrew H. Nash. The corporate team included partner John H. Butler and associate Saswat Bohidar. The benefits team included partners Barbara Nims and Jean M. McLoughlin and associate Jessica Lutrin. The bankruptcy team included partner Damian S. Schaible and associate Michelle M. McGreal. The tax team included partner Kathleen L. Ferrell and associate Yuliya Epifantseva. All members of the Davis Polk team are based in the New York office.