The unwanted loans from failed Signature Bank landed in a public private partnership. The private portion includes Blackstone, a storied private equity underwriter (PEU), and a Canadian pension fund. The public side is the Federal Deposit Insurance Corporation (FDIC).
The FDIC press release stated:
Hancock JV Bidco L.L.C. (Hancock), an entity indirectly controlled by Blackstone, Inc. and other investors, paid $1.2 billion for a 20 percent equity interest in SIG CRE 2023 Venture LLC (Venture), a newly formed entity wholly owned by the FDIC–Receiver. The FDIC–Receiver will retain an 80 percent equity interest in the Venture. The FDIC–Receiver contributed to the Venture approximately $16.8 billion in CRE loans collateralized by office, retail and market–rate multifamily properties.
Hancock will be responsible for the management, servicing and liquidation of the Venture’s assets. Hancock will also be required to manage the portfolio.
And what fees will Blackstone/Hancock earn on the management. servicing and liquidation of SIG CRE 2023 assets?
The public side put up cash for the JV.
..the FDIC–Receiver provided financing equal to 50 percent of the Venture’s value..
PEUs backing failed banks? The FDIC hasn't been this generous since Sheila Bair gifted BankUnited to The Carlyle Group, Blackstone, Centerbridge and WLRoss.
It is the era of alternatives, complete with a campy holiday message blatant PEUmmercial.
