FDIC Structured Sales Transactions
Since May of 2008, the FDIC turned to a “partnership model to sell large numbers of distressed assets (primarily non-performing single family and commercial real estate loans and related real property) held by recently failed financial institutions.”
As of March 2011, the FDIC has closed 24 structured sale transactions transferring 38,800 assets and $23.3 billion in unpaid principal balance.
The FDIC stays on as a partner in these transactions with the stated goal of capturing upside and appreciation as the loans are worked through and the economy and asset values recover.
For the borrowers of failed banks whose loans were acquired in the structured transactions, the new FDIC entities have become, in essence, the borrower’s new bank as the loans are worked out and resolved with the new owners.
Four investor groups (highlighted in yellow below) have dominated the bidding, in some cases winning multiple bids, and together accounting for nearly 60% of the book value purchased in structured transactions as well as now controlling over 50% of loans assumed by the FDIC LLC’s.
Winning FDIC Structured Sale Bidder | No. of Loans | Implied Price (millions) | Book Value (millions) |
Cache Valley Bank | 761 | $63 | $279 |
Colony Capital Acquisitions, LLC | 5,104 | $1,904 | $4,035 |
Diversified Business Strategies | 147 | $205 | $702 |
Gulf Coast Bank & Trust | 733 | $48 | $146 |
Hudson Realty Capital Fund V LP | 110 | $19 | $102 |
Kingston Management Services | 1,112 | $101 | $1,120 |
Mariner Real Estate Partners, LLC | 1,062 | $264 | $762 |
OneWest Ventures Holdings LLC | 3,044 | $271 | $1,652 |
PennyMac | 2,829 | $215 | $558 |
PMO Loan Acquisition Venture, LLC (OakTree Capital) | 279 | $695 | $1,703 |
Residential Credit Solutions, Inc. | 9,230 | $1,191 | $2,218 |
Rialto Capital Management LLC | 5,511 | $1,235 | $3,052 |
Roundpoint Capital Group | 6,786 | $416 | $1,094 |
Square Mile Capital LLC | 57 | $346 | $421 |
Starwood (Northwest Operating Company) LLC | 101 | $2,725 | $4,402 |
Stearns Bank | 520 | $161 | $733 |
Turning Point Asset Management, LP | 1,456 | $111 | $314 |
Totals | 38,842 | $9,971 | $ 23,293 |
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