Sunday, January 15, 2012

PEU's to Exit BankUnited?

Reuters reported:

Private equity-backed BankUnited Inc has hired Goldman Sachs Group to explore a potential sale.
That's the widely hated Goldman Sachs helping private equity underwriters complete their profitgasm on BankUnited.  

BankUnited was taken over and recapitalized by private investors such as Wilbur Ross's WL Ross & Co, Blackstone Group LP and Carlyle Group CYL.UL during the financial crisis, and went public in January 2011.
Reuters omitted the FDIC's $2.27 billion cash injection in BankUnited.  This non-debt, non-equity capital injection made BankUnited the best capitalized bank in America.  Where can others line up for 72 cents on the dollar of free money?  Oh, the game is for PEU's only.  Dang!

PEU's may soon flip the 28 cents on the dollar they put up for BankUnited,, but they'll get 100% of the profits.  BankUnited took in $780 million in their 2011 IPO. Add $40 million in transactions fees, dividends and special dividends and PEU investors have nearly free shares.  BU's owners initial investment was $900 million.  Will it be a double, triple or quadruple?