Financial sponsor-backed IPOs (IPO news) haven't fared well this year, and demand remains weak. But sometimes it makes sense to swim against the tide. So it goes with BankUnited. 

Bloomberg reports that the Florida-based bank is planning an initial public offering just 15 months after it collapsed and was bought out by a group that includes the Carlyle Group and WL Ross & Co. Blackstone Group and Centerbridge Capital Partners are also owners. Apparently, the group has just selected Bank of America, Goldman Sachs and Morgan Stanley as the lead underwriters. 

This may seem to be an odd move. The private-equity backed IPO market--even more than the IPO market as a whole--remains in the doldrums. As a potential investor, you would have to be a bit skeptical, not so much about the owners doing a decent job with shoring up the bank. BankUnited's owners were required to inject $900 million into the institution as part of its deal with the FDIC. Earlier this year the bank had $7.7 billion of deposits and $11.5 billion of assets as of March 31. 

It may be that $900 million was enough to get the balance sheet in order in just 15 months. But it would be worth some serious due diligence, however. It will also be worth studying exactly how the proceeds will be used. Recall that after this deal, the regulators changed their tack in part to prevent quick flips. The bank agreed not to sell the company for 18 months. 

Investors may be more much dubious about the bank's prospects going forward. No one thinks that the Florida lending market is on a major upswing. If anything, it could be tottering all over again. We could well be on the cusp of a double dip recession. A lot will boil down to the terms of the deal, but I'd expect skepticism. If the IPO were scuttled along with so many others, it would hardly be a surprise. In fact, all of this might be something of a trial balloon. 

But perhaps the smart guys who own the bank know something we don't. And if it does work, Uncle Sam may be one of the beneficiaries. The FDIC holds a warrant giving it the right to buy shares at a discount if it is sold. - Jim