# ArrowMark Financial Corp. ArrowMark Financial Corp. is an Asset Manager based in Denver, United States. ## Overview - **Organization type:** Asset Manager - **Headquarters:** Denver, United States - **Region:** North America - **Address:** Denver, CO, United States - **Founded:** 2007 - **Assets under management:** Undisclosed - **Website:** arrowmarkfinancialcorp.com - **LinkedIn:** https://www.linkedin.com/company/arrowmark-financial-corp ## Regulatory record - **Reports private funds:** No ## About ArrowMark Financial Corp. was formed in 2007 and is managed by ArrowMark Partners, a Denver-based credit and equity manager. The firm operates as an externally managed, non-diversified closed-end investment company listed on Nasdaq under the ticker BANX. Its mandate is narrow: invest in subordinated debt and equity issued by community banks, specialty lenders, and asset managers, often in the form of trust-preferred securities (TruPS) and other regulatory capital instruments. This positions the vehicle as a capital-relief partner for financial institutions that need to optimize their balance sheets without issuing common equity. The portfolio is concentrated in U.S.-based financial services issuers. Asset classes span subordinated notes, trust-preferred collateralized debt obligation (CDO) equity, common stock of community banks, and structured credit residuals. Stage coverage is post-origination — ArrowMark Financial acquires securities in the secondary market and through direct negotiation with issuers, rather than originating loans. Confirmed positions in public filings include subordinated notes issued by Live Oak Bank, Cadence Bank, and Stifel Financial Corp. Geographic exposure is overwhelmingly domestic, with a few positions tied to non-U.S. specialty lenders that raise capital in the U.S. market. The vehicle does not operate as a fund-of-funds; it runs a single balance sheet with a portfolio concentrated in roughly 40 to 50 names at any given time. The firm reported a total investment portfolio of approximately $160 million at fair value as of its most recent public filing. ArrowMark Financial is externally advised by ArrowMark Colorado Holdings, LLC, which employs a team of credit analysts based in Denver. The adviser also manages parallel credit strategies for institutional investors, including insurance companies and pension funds seeking exposure to bank-issued regulatory capital instruments. ArrowMark Financial declared a regular quarterly dividend throughout the 2024–2025 period, supported by coupon income from its floating-rate and fixed-rate subordinated debt holdings. ArrowMark Financial's structural differentiator is its balance-sheet collateral pool, which is legacy with respect to the post-2008 TruPS market. A significant portion of the portfolio consists of trust-preferred CDO tranches issued before 2008 that are now in amortization. This creates a runoff portfolio dynamic: the vehicle harvests cash flows from a shrinking pool of high-coupon structured credit assets rather than recycling capital into new originations. The equity trade at a persistent discount to net asset value, which the board has not addressed through a self-tender or conversion to a perpetual BDC as of mid-2025. ## Sectors - Private Credit - Real Estate ## People - Sanjai Bhonsle — Chief Executive Officer ## Questions ### Who runs investment decisions at ArrowMark Financial Corp.? The fund is externally advised by ArrowMark Colorado Holdings, LLC, a Denver-based registered investment adviser. Sanjai Bhonsle serves as the Chairman and Chief Executive Officer of the fund, while portfolio management is executed by the broader credit team at the adviser, which also manages institutional credit mandates. Day-to-day investment decisions are delegated to the adviser's investment committee under the terms of the advisory agreement. ### Is ArrowMark Financial Corp. structured as a BDC or a closed-end fund? ArrowMark Financial Corp. is a non-diversified, externally managed closed-end fund, not a business development company. It elected to be regulated as an investment company under the 1940 Act and is taxed as a corporation. Unlike a BDC, it does not have a 70% asset test requiring ownership of qualifying assets in private U.S. companies; instead, its mandate targets securities issued by banks and financial intermediaries. ### What does ArrowMark Financial Corp. actually invest in? The portfolio primarily consists of subordinated debt instruments issued by U.S. community banks, specialty lenders, and asset managers. A large proportion of the holdings are trust-preferred securities (TruPS) and TruPS CDO equity tranches, many of which were issued before 2008. The fund also holds common stock of community banks, structured credit residuals, and subordinated notes issued by publicly traded financial institutions. ### Does ArrowMark Financial Corp. originate loans directly? No. The fund acquires securities in the secondary market and through direct bilateral negotiations with issuing institutions, but it does not originate senior loans or act as a direct lender. Its capital serves as a funding source for banks that are refinancing legacy trust-preferred obligations or raising incremental regulatory capital. ### How is ArrowMark Financial related to ArrowMark Partners? ArrowMark Financial Corp. is externally advised by ArrowMark Colorado Holdings, LLC, which operates under the brand ArrowMark Partners. ArrowMark Partners is the investment adviser responsible for portfolio management, compliance, and administrative functions. The adviser also manages parallel credit strategies for institutional separate accounts, including strategies focused on community bank debt and structured credit. ### Why does ArrowMark Financial Corp. trade at a discount to NAV, and is there a plan to address it? The persistent discount to net asset value is driven in part by the portfolio's legacy TruPS CDO composition — a shrinking, amortizing asset pool that new investors cannot replicate. Public filings have acknowledged the discount, but the board has not authorized a share repurchase program, a tender offer, or a conversion to a perpetual-life structure as of mid-2025. Distribution policy remains focused on cash payouts rather than discount management. ## Related profiles - [Lucid Diagnostics](https://altss.com/profile/lucid-diagnostics-inc) - [Quantum-Si](https://altss.com/profile/quantum-si-inc) --- Last updated: 2026-06-03T20:00:00.000Z Canonical page: https://altss.com/profile/arrowmark-financial-corp Maintained by Altss — https://altss.com — methodology: https://altss.com/methodology