J.C. Flowers Engages in Sale of Island Finance to VRM Penzini Capital

J.C. Flowers and the Sale of Island Finance to VRM Penzini Capital

In a significant development for the financial services sector, J.C. Flowers & Co. announced its agreement to sell Island Finance, the largest non-bank consumer financial institution in Puerto Rico, to VRM Penzini Capital. This strategic move is poised to enhance the growth prospects of Island Finance while ensuring it continues its dedicated service to Puerto Rican consumers.

Founded in 1959, Island Finance has established itself as a cornerstone in Puerto Rico's financial landscape. With a workforce of nearly 500 across 47 branches on the island, the institution has built strong relationships within the communities it serves. The company specializes in providing a variety of consumer financial products tailored to the everyday needs of Puerto Ricans, focusing on areas such as home improvements, education, travel, and miscellaneous expenses.

Thomas Harding, Managing Director of J.C. Flowers, expressed gratitude for the opportunity to partner with the exceptional management team led by CEO Jeanette Villamil. Harding noted, "We are proud to have guided Island Finance through a pivotal phase of growth marked by consistent profitability and innovation. It has been an honor to position Island Finance for continued success in serving the people of Puerto Rico."

Jeanette Villamil, CEO of Island Finance, shared her appreciation for J.C. Flowers' guidance throughout transformative phases, including the company's independence from Grupo Santander and the accomplishment of executing its first asset-backed securities transaction entirely tied to consumer loans originating in Puerto Rico. Villamil stated, "Joining VRM Penzini Capital signifies an exciting new chapter for us. Their customer-focused commitment aligns perfectly with our approach, allowing us to create more opportunities for our customers and stakeholders."

In response to the acquisition, Carlos Penzini, Managing Partner of VRM Penzini Capital, expressed enthusiasm about welcoming Island Finance into their portfolio. He remarked, "Island Finance is a beloved institution in Puerto Rico, having supported families for generations. We are dedicated to building on this legacy while innovating to meet the evolving financial needs of the community."

Moreover, Penzini emphasized the long-term commitment to Puerto Rico that this acquisition represents, aiming to enhance innovation, access, and overall customer experience for Puerto Rican families navigating their financial journeys.

Island Finance boasts a 66-year legacy of community service, thriving on its motto, "Yes, you can." The emphasis on excellent customer service serves as a hallmark of the institution, showing profound respect for its clients by understanding their unique needs. This philosophy is fundamental to the brand's identity and operational strategy moving forward.

J.C. Flowers & Co., established in 1998, is recognized as a leading global private investment firm devoted to the financial services sector. With a rich history of investing over $18 billion across diverse financial verticals, they have established offices in major cities including New York, London, and Palm Beach.

On the other hand, VRM Penzini Capital is characterized by its focus on long-term, growth-oriented investments, spanning financial services to consumer-focused enterprises. The firm's commitment to Puerto Rico's economic growth mirrors its foundational goal of fostering local community opportunities and ensuring access to essential services.

As the sale finalizes in December 2025, the future of Island Finance reflects a harmonious blend of its historical roots and a forward-looking vision, poised to embrace new opportunities while remaining steadfast in its commitment to the communities it serves.

To learn more about Island Finance, visit their official website at www.islandfinance.com. Both companies' commitment to excellence indicates that this transition will not only benefit the institutions involved but also the broader community of Puerto Rico.

As Island Finance embraces this new chapter, the focus on customer-centric financial solutions stands at the forefront of their mission, promising to empower families across the island in achieving their financial aspirations.