Private equity powerhouse TPG has been busy with financials lately. The firm recently took a stake in Washington Mutual (NYSE: WM) and even tried to invest in Merrill Lynch (NYSE: MER).
Well, this may have been the start of a trend. For example, the co-founder of the Carlyle Group, David Rubenstein, is also talking up financials.
He even said the sector was the "single biggest opportunity," at least in the U.S.
Hey, private equity firms certainly have an intimate understanding of financials. After all, both have been partners in many deals over the years.
Plus, as seen with Citigroup (NYSE: C) – which recently announced it is issuing $3 billion in equity – it looks like the balance sheets are still iffy.
Rubenstein thinks that there are many mid-tier financials that present great opportunities for value as well. And, with over $80 billion in assets under management, Carlyle certainly has some firepower to get some of these deals done.
Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and midsize businesses.
