Banking on Returns

Private equity investors find new opportunities to deploy capital in troubled banking sector.

June 16, 2008

It's provided a booming source of fee income--and has been equally problematic for Wall Street when deals sour--but private equity may be an anchor for banks and financial-services companies seeking stability in the wake of last year's credit storm and ongoing loan portfolio problems. Private capital interest in the banking sector exemplified by deals involving Washington Mutual and National City--structured as minority-stake investments from high-profile financial sponsors TPG and Corsair Capital Partners--couldn't be more auspicious for banks and financial institutions.

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