The private equity industry is giddy about the strong showing of BankUnited in the aftermarket. The IPO caps what many think is a good outcome to a bank bailout, a nice way to reassure people that the broad industry bailout of smaller banks is proceeding well.

Depending on your  point of view, there are arguably several heroes in the BankUnited saga. The FDIC stepped in and decided to back a deal to save the institution. The final deal was a sweet one, as the FDIC agreed to cover up to $10.5 billion in future loan losses and give the new owners $2.2 billion in cash. The eventual buyers paid $945 million. The list of private equity firms behind the deal include Carlyle Group, Blackstone Group, Centerbridge Partners, Wilbur Ross and several smaller investors.

The guy basking in the brightest glow may be CEO John Kanas, who led the private equity group at the local management level. He is well on his way to transforming the bank into a regional power. It is profitable and well-capitalized. Many think it will acquire banks soon, perhaps thanks to its new currency.

The deal has certainly whetted the appetite for more bank IPOs, though few seem to be in the pipeline. Breakingviews calls the deal "an example of capitalism working well with sound regulatory policy."

But we shouldn't discount the costs to the FDIC, which says the bailout will ultimately cost it $5.7 billion. At least it's not taxpayer dollars but rather money from the FDIC fund, which is paid for by the industry. 

For more:
- here's the Breakingviews piece

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