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FDIC launches sale of $18.5 billion of Signature Bank loans

Published 07/28/2023, 04:48 PM
Updated 07/28/2023, 05:36 PM
© Reuters. The company logo for Signature Bank is displayed at a location in Brooklyn, New York, U.S., March 20, 2023.  REUTERS/Brendan McDermid
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(Reuters) -The U.S. Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio from Signature Bank (OTC:SBNY) this week, a set of loans linked to major private equity and investing firms, according to the regulator's website.

The portfolio comprises 201 performing capital-call loans tied to Starwood Capital Group, Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX), Thoma Bravo and Brookfield Asset Management, Bloomberg News reported on Friday, citing a person familiar with the matter.

The FDIC hired Newmark Group (NASDAQ:NMRK) in March to sell about $60 billion of Signature Bank's loans, after state regulators decided to close down the failed lender amid a turmoil in regional banks earlier this year.

The FDIC declined to comment beyond the notice on its website.

© Reuters. The company logo for Signature Bank is displayed at a location in Brooklyn, New York, U.S., March 20, 2023.  REUTERS/Brendan McDermid

The sale was launched on July 25 and is limited to FDIC-insured depository institutions, the Bloomberg report said.

The notice reads that the loans for sale "consist of subscription credit facilities to private equity funds."

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