RT Journal Article
SR Electronic
T1 When Private Equity Meets Banks
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 61
OP 68
DO 10.3905/jpe.2008.707203
VO 11
IS 3
A1 Jeffrey L. Hare
A1 Christopher N. Steelman
YR 2008
UL https://pm-research.com/content/11/3/61.abstract
AB Private equity investment in banking organizations presents a unique opportunity for the private-equity fund to diversify its investment portfolio through entry into the banking industry and for banking organizations to gain access to additional sources of capital. A properly structured investment transaction can result in tremendous benefits to the parties involved and can strengthen the financial position of both the private equity firm and the banking organization. However, given the highly regulated nature of the banking industry, multiple considerations must be taken into account by both the private equity firm and the banking organization in order to ensure that the investment transaction is in compliance with these state and federal regulations while at the same time still meeting the business needs and objectives of both parties.TOPICS: Private equity, legal/regulatory/public policy, portfolio construction, real assets/alternative investments/private equity