In 2000, Warburg Pincus invested in Dime Bancorp (Dime), a leading regional thrift in the New York City market with over $25 billion in assets and $14 billion in deposits at the time of the investment. Dime also originated residential mortgages through 250 branch locations and services mortgages for its own portfolio and third parties. Following a hostile tender offer by North Fork Bancorp (NFB), Warburg Pincus made a white night investment in Dime in support of management. Warburg Pincus’ investment thesis centered around backing an attractive lending franchise with a strong credit culture that had significant upside from executing on operational improvements. Warburg Pincus also believed that given Dime’s branch network in New York it would be an attractive acquisition candidate. In 2002, Warburg Pincus exited its investment in Dime through a sale to Washington Mutual. The transaction valued Dime at a significant premium to the value of the NFB offer.
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