Blackstone Plans $1 Billion Failed-Bank Fund

Mar 18 2010 | 8:56am ET

The Blackstone Group, which has already been linked to two efforts to buy failed banks, is trying again.

The private equity giant is in preliminary talks to raise $1 billion for a blind pool to acquire failed banks, Bloomberg News reports. The planned fund follows Blackstone’s purchase in May—alongside W.L. Ross & Co. and the Carlyle Group—of BankUnited Financial Corp. and January’s news that billionaire entrepreneur Richard Branson had approached the firm about backing his bid for the failed British lender Northern Rock.

Blackstone has also applied for a British bank charter in connection with its plans to launch a new bank with hedge fund Cambridge Place Investment Management.

The New York-based firm is working with the former president of Bluebonnet Savings Bank, R. Brad Oates, on the new blind pool.

Alternative investment firms have been active in buying failed banks in recent months, with Dune Capital Management, Elliott Management, Greenlight Capital, J.C. Flowers & Co., Paulson & Co. and Soros Fund Management all taking part in deals for seized banks.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...