Saturday, March 8, 2014

BankUnited Now PEU Free

BusinessWire reported:

BankUnited, Inc. (NYSE:BKU) (the "Company") announced today the closing of the sale of 11,853,276 shares of common stock by investment funds affiliated with The Blackstone Group, The Carlyle Group, WL Ross & Co. LLC and Centerbridge Partners, L.P. (the "Selling Stockholders"). Upon the closing, the Selling Stockholders no longer own any shares in the Company.

The PEU profitization is complete, thanks to $2.27 billion in cash from Sheila Bair's FDIC to the BankUnited's private equity owners.  The FDIC eventually subsidized BankUnited to the tune of $5.9 billion.

Here's how Carlyle fared after putting up 22% of roughly $900 million to takeover BankUnited from the FDIC.  Carlyle sold their 20.4 million shares for an average price of $28.60 per share in a series of stock offerings.  Carlyle's $200 million investment turned into  $585 million in proceeds, a $385 million profit.

Sheila Bair not only saved the banking system, she gave Carlyle one of their quickest and most profitable financial investments.  That's a sweet combination in today's PEU world.  Put her on a PEU owned bank board!