April 10, 2008

Private Equity trun at Financials

Private equity is the latest group to try their luck bargain hunting in the financial sector. The first one to test the waters were the sovereign wealth funds and they got burned bad. Second it were the billionaires and they to got burned bad, Bear Stearns anyone. Now Private Equity is getting into the fray and in a big way. Here are some examples:

  • Private equity has bought $12 Billion of Citi debt assets,
  • Private Equity invests $7 billion in Washington Mutual
  • Another PE outfit is looking for banking assets:
    The firm has been looking into loan and property portfolios of certain regional banks, even as the financial sector is rocked by the credit crunch, the report said.
  • Wilbur Ross says he is looking at banks:
We intend to keep adding servicing ... because we think the mortgage business is fundamental to America. The mortgage business isn't going away; it's just going to have to be done in a different way going forward.
  • All the distressed fund popping all over the place to take advantage of bargains in banks and financial assets.
The good news is there is a buyer out there, but will Private Equity get the same treatment as others? Only time will tell.

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