Is it all that shocking that the owners of BankUnited--which include the likes of Carlyle Group, Wilbur Ross and Blackstone Group--are seeking an early out?
When the troubled bank went public not too long ago, it seemed like quite a coup for the owners, who seemed bent on turning the bank into a regional banking powerhouse. That would have showcased the ability of private equity firms to transform shoddy companies into growth vehicles that create jobs. But the future clouded up pretty quickly, and the owners have adjusted their course. They now are apparently bent on a quick flip.
Breakingviews opines: “The hopes of Kanas and his crew from Carlyle, Blackstone and WL Ross to quadruple BankUnited into a $40 billion-asset institution, with its attendant economies of scale, were vanquished by a confluence of crummy economics, potentially delusional industry rivals and zealous regulators.”
Despite the state of the industry, many would-be targets apparently were asking for high prices, at “pre-crisis valuations. They seem to believe good times will come again.”
As for the widely reported idea that the bank was selling out because of heavy information demands by the Fed, Breakingviews explains that the bank had previously agreed to comply with such demands.
“That was a Federal Reserve precondition for BankUnited’s $70 million purchase and charter switch of a bank in New York, where (CEO John) Kanas wanted to fire up the competitive dynamics.”
In the end, the only sure thing is that fact that owners will fare very well on their exit.
For more:
- here’s the article
Related article:
Private equity firms to cash out of BankUnited
