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The US Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio from Signature Bank this week, a set of loans linked to major private equity and investing firms, according to the regulator’s website.

The portfolio comprises 201 performing capital-call loans tied to Starwood Capital Group, Carlyle Group, Blackstone , Thoma Bravo and Brookfield Asset Management, Bloomberg News reported on Friday, citing a person familiar with the matter.

Also read: FDIC asks banks to submit final bids for First Republic by Sunday: report

The FDIC hired Newmark Group in March to sell about $60 billion of Signature Bank’s loans, after state regulators decided to close down the failed lender amid a turmoil in regional banks earlier this year.

Also read: FDIC plans to offer $60 billion of Signature Bank loans in the coming months

The FDIC declined to comment beyond the notice on its website.

The sale was launched on July 25 and is limited to FDIC-insured depository institutions, the Bloomberg report said.

The notice reads that the loans for sale “consist of subscription credit facilities to private equity funds.” 

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Updated: 30 Jul 2023, 08:53 AM IST

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