(Reuters) -The U.S. Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio from Signature Bank 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, Blackstone, Thoma Bravo and Brookfield Asset Management, Bloomberg News reported on Friday, citing a person familiar with the matter.
The FDIC hired Newmark Group 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.
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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(Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur)