Private Equity Interest in Weak Banks Gains Steam

Last week two Oregon strugglers, Cascade Bancorp in Bend and West Coast Bancorp in Lake Oswego, announced recapitalization deals that involved private-equity firms. Also, PrivateBancorp Inc. in Chicago, which had been grappling with commercial real-estate loan troubles, completed a public stock offe...

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Bibliographic Details
Published in:The Investment Dealers' Digest : IDD 2009-11, Vol.75 (42), p.1
Main Author: Barba, Robert
Format: Article
Language:English
Subjects:
Bank acquisitions & mergers
Banking
Banking industry
Business conditions
Equity
Financial services
Investment policy
Investments
Market strategy
Private equity
Recapitalization
Regulatory approval
Online Access:Get full text
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Summary:Last week two Oregon strugglers, Cascade Bancorp in Bend and West Coast Bancorp in Lake Oswego, announced recapitalization deals that involved private-equity firms. Also, PrivateBancorp Inc. in Chicago, which had been grappling with commercial real-estate loan troubles, completed a public stock offering and placed a big chunk with one of its existing private-equity owners. Donald Marron, whose Lightyear Capital LLC agreed to inject $40 million into Cascade, said that his team has met with roughly 150 management teams at midsize community banks in the past year. Observers said one reason that investors have begun to warm to the sector again is that they are more comfortable making infusions alongside public capital raises - and such stock sales became an option for troubled banking companies about two months ago.
ISSN:0021-0080