FDIC Seeks Buyers for $18.5 Billion of Signature Bank Loans Tied to Private Equity

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(Bloomberg) — The Federal Deposit Insurance Corp. launched the sale of an $18.5 billion loan portfolio from Signature Bank this week, a pool of debt tied to major private equity and investing firms.

The portfolio comprises 201 performing capital-call loans tied to firms including Starwood Capital Group, Carlyle Group Inc., Blackstone Inc., Thoma Bravo and Brookfield Asset Management Ltd., according to a person familiar with the matter who asked not to be identified citing private information.

The loans for sale “consist of subscription credit facilities to private equity funds,” according to a notice from the FDIC. The FDIC declined to comment. A representative for Newmark didn’t immediately return a message seeking comment.

The sale, which launched on July 25, is limited to FDIC-insured depository institutions, according to the FDIC’s notice. The deadline for a bid is in September, with closing set for early October. Newmark Group Inc. is handling the sale.

The sale of this debt is the most recent phase of the FDIC’s offloading of about $60 billion of Signature Bank loans. The loans have been in FDIC receivership since earlier this year, when Signature Bank collapsed amid regional bank turmoil.

Newmark is still working on preparing a sale of Signature’s commercial real estate loans, although the timing remains unclear, the person said.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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