May 18, 2009

For the private-equity industry, the future of BankUnited Financial Corp. might be the most closely watched deal of the year.The Coral Gables, Fla., thrift, with 85 branches scattered mostly in South Florida, could serve as an indicator of how private-equity firms enter the banking industry. Federal regulators earlier this year declared that BankUnited was "critically undercapitalized" and ordered it to find a buyer or raise new capital.

Among the bidders expected to make a pitch by Tuesday's deadline is a consortium of private-equity shops led by billionaire investor Wilbur L. Ross. If successful, it would be one of the largest acquisitions in the financial-services sector made by private equity, and could signal a shift in the government's attitude toward private-equity buyers of banks.To be sure, private equity might not win the bank.Regulators have traditionally favored lenders against other bidders in sales of banks.