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PE backers of BankUnited see lucrative exit

Three  private equity backers of BankUnited -- WL Ross & Co. LLC, Blackstone Group LP and Carlyle Group -- are welcoming the upcoming initial public offering of the financial institution. And why not?

An amended prospectus of the IPO reveals the offering will be priced between $23 and $25 per share. Overall, the three PE firms would be selling roughly 22.25 million of their shares, which if successful, would generate $630 million at the midpoint of the range. (See The Deal Pipeline -- subscription required.) The BankUnited deal is one of numerous PE-backed IPOs expected in 2011 that would demonstrate a lucrative exit.

The IPO return would be equal to a more than 100% partly realized gain on investment for the three firms in less than two years, according to The Deal's Michael Rudnick and David Carey. WL Ross, Blackstone and Carlyle are said to have invested between $220 million and $240 million apiece in BankUnited in 2009.

In the expected IPO, the three aforementioned buyout firms and Centerbridge Partners LP would sell a total of 19.37 million shares, lowering their combined ownership to 60.2% from 83.6% in the bank. - Gerald Magpily

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