One private equity firm eyes financial services

February 2, 2009 | By Jim Kim

For J.C. Flowers, the private equity company, the financial crisis spells opportunity in the form of government-assisted deals. It has already inked a deal to buy IndyMac--among the first to fail in the crisis--and is now looking for similar deals, according to Reuters. Financial services have not been kind to private equity firms. Just look at TPG and Wachovia. J.C. Flowers has had its share of troubles. It was an investor in SLM Corp., a deal that didn't work. And it owns a stake in a troubled German lender. But the U.S. government-assisted angle changes the equation. Flowers got approval in August to personally buy a small bank in Missouri that has about $14 million in assets, Reuters notes. That allowed his firm to avoid being classified a bank holding company. It serves as a base from which to acquire other banks.

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