Palo Alto Networks founder Nir Zuk moves into U.S. banking with Liberty Bank bid
Fresh off the sale of Esh Bank, Zuk has filed for regulatory approval to become the largest shareholder in California-based Liberty Bank, teaming up with veteran fintech investors.
The ink has barely dried on the agreement to sell Esh Bank to Isracard, controlled by Yitzhak Tshuva, and the bank’s founder, Nir Zuk, is already moving on to his next target.
Zuk, founder of Palo Alto Networks, has filed an application with the Federal Reserve in San Francisco to acquire a significant stake in the parent company of Liberty Bank, a federally chartered bank based in California. If approved, Zuk is expected to become the bank’s largest shareholder.
He is also expected to join the board of the bank’s holding company, alongside Yuval Aloni. In addition, Zuk plans to appoint Nadine Bodo-Trachtenberg, currently deputy chair of Esh Bank, as a director.
Zuk and other Esh Bank shareholders recently signed a memorandum of understanding with Isracard to sell the bank in a stock-and-cash deal valued at approximately NIS 500 million (around $163 million).
Liberty Bank, N.A., manages approximately $440 million in assets. It is licensed to operate across the United States and is regulated by the Office of the Comptroller of the Currency, which oversees national banks, as well as insured by the Federal Deposit Insurance Corporation (FDIC).
If approved, this would mark Zuk’s second major investment in banking. He remains a significant shareholder in Esh Bank’s parent company and in eOS, the technology firm that developed the core banking system used by Esh. Following the sale announcement, Calcalist reported that eOS is expected to lay off dozens of employees.
The Liberty deal also includes prominent investors such as Betsy Cohen and Daniel Cohen, founders of The Bancorp. Daniel Cohen served as chairman of The Bancorp for 23 years, while Betsy Cohen was its CEO for much of that period. The two also founded Cohen Circle, a venture capital firm focused on financial technology. Betsy Cohen has also been active in the SPAC market, particularly in fintech.
Current shareholders in Liberty Bank, including investment firms Stone Point Capital and Reverence Capital Partners, are expected to remain minority investors following the transaction.
