Think the credit crisis is a bad thing? Well, Wilbur Ross doesn't. He's a maestro restructuring expert – having decades of experience on highly complex deals. In fact, he was prescient with key roll-ups in sectors like steel (where he made billions).
His next stop? He likes US banks. In fact, according to a piece in Bloomberg, Ross is putting together a $4 billion fund to capitalize on the opportunity. Apparently, he's talking to a variety of investors in Abu Dhabi. Hey, sovereign wealth funds have already shown their alacrity for US financial institutions, with investments in mega firms like Merrill Lynch (NYSE: MER) and Citigroup (NYSE: C).
Ross' strategy makes a lot of sense; that is, he wants to buy 100 to 200 banks. Thus, by building some heft, he should realize economies of scale – and ultimately build more value for his investors. Simply put, it's a formula he has refined.
Actually, Ross has already been aggressive in the financial services sector. For example, he recently spent $1.1 billion on Option One Mortgage, which was purchased from H&R Block (NYSE: HRB).
Tom Taulli is the author of various books, including The Complete M&A Handbook
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