June 15, 2009

With the leveraged-buyout business on life support, major private-equity firms such as the Carlyle Group are taking a closer look at the battered banking sector as a way to make money for their clients.Last September, District-based Carlyle invested $75 million in Boston Private Financial Holdings. Last month, it was part of a group that injected $900 million into Florida's BankUnited.

Carlyle was part of a group looking to buy Atlanta-based Silverton Bank earlier this month, until regulators decided to liquidate the institution instead.Private-equity firms have long eyed the financial services industry, but the sector took a back seat over the past two decades as private equity pursued fat returns fueled by leveraged-buyout deals.