The Federal Deposit Insurance Corp. launched the sale of an $18.5 billion loan portfolio from Signature Bank last week, the most recent development in its plan to offload $60 billion in loans from the failed entity.
The portfolio sale, announced July 25, is comprised of 201 loans made to private equity and investing firms.
A source told Bloomberg News that the firms include Starwood Capital Group, Carlyle Group Inc., Blackstone Inc., Thoma Bravo, and Brookfield Asset Management Ltd.
The loans “consist of subscription credit facilities to private equity funds,” according to the FDIC notice. “The loans are collateralized by liens on capital call rights and business assets.” They will be offered in four pools, which each consist of whole loans, non-lead syndicated loans and lead syndicated loans, and are each subject to change in size and composition.
Eligible bidders must be FDIC-insured depository institutions or commercial banks which certify that they are not competitors of the borrowers, among other things, according to the notice.
The bid deadline is September 12, and closing is set for October 2.
Signature was shuttered in March by the New York Department of Financial Services amid a broader banking crisis, and all of its deposits and assets were swiftly put in an FDIC receivership.
Following the closure, which was eventually chalked up to bad management, the majority of Signature’s assets were sold to New York Community Bank subsidiary Flagstar for $2.7 billion. Newmark Group was tapped that month as a financial advisor to help the FDIC offload the $60 billion in loans retained in its receivership.
Newmark is working on launching a sale of Signature’s commercial real estate loans, a source told Bloomberg News. A timeline, however, isn’t yet clear.
