Oaktree Capital Group LLC could have a big payday coming.
The downtown L.A. asset management and private-equity firm is reportedly in talks to sell Jackson Square Aviation, an aircraft-leasing company, to Tokyo’s Mitsubishi UFJ Lease & Finance Co. for upwards of $1 billion.
A deal of that scale would more than double Oaktree’s original investment in 2010, when it committed $500 million in equity to help launch Jackson Square. Oaktree did not respond to requests for comment.
Jeff Potter, chief executive of aviation consulting firm Boyd Group International in Evergreen, Colo., said he is not surprised to see interest from the private-equity world because the aircraft-leasing business is “very healthy.”
“Clearly this sector is doing very well,” he said. “When you have private equity out there and they see a strong sector, you’ll probably see some activity.”
Potter pointed to industry leaders such as Air Lease Corp. and International Lease Finance Corp., both in Century City, as examples of the strength of the sector. Each has announced significant lease deals recently as many airlines have looked to take on more leased jetliners.
Jackson Square, whose co-founders have a history of securing investments from Oaktree, has 64 planes in its fleet and a dozen more on order.
It has been a busy month for Oaktree, which also announced an unrelated investment in the mortgage market.
The firm partnered with Carrington Holding Co. in Greenwich, Conn., to buy $158 million of troubled home loans from Citigroup Inc. The buyers intend to pilot a program that would allow delinquent borrowers to rent their homes rather than face foreclosure.
Warrant Buy
BBCN Bancorp Inc., the Koreatown parent of BBCN Bank, said it has repurchased an outstanding warrant from the government for $2.2 million.
The warrant, issued in late 2008 as part of the Troubled Asset Relief Program, had entitled the Treasury Department to purchase shares of BBCN’s stock at $9.64 a share, far below its current price: Shares closed Aug. 15 at $12.18. The warrant was issued by Nara Bancorp, one of the predecessor companies to BBCN.
The bank said it has not yet reached an agreement to repurchase the warrant issued by Center Financial Corp., the other predecessor to BBCN.
BBCN, the nation’s largest Korean-American bank, was formed last year through the merger of Nara and Center.
Deals Done
State regulators recently approved a number of local bank and credit union mergers.
Brea’s Credit Union of Southern California was granted permission to acquire Inland Empire Credit Union in Pomona and Family 1 Federal Credit Union in Placentia. The deals were agreed to in principle in June.
The California Department of Financial Institutions also approved a merger between Santa Monica City Employees Federal Credit Union and Southland Credit Union of Los Alamitos.
In banking, regulators signed off on the pending acquisition of Beach Business Bank in Manhattan Beach by Irvine’s First PacTrust Bancorp Inc., and the merger of L.A.’s Pacific Western Bank and American Perspective Bank in San Luis Obispo.
Order Over
The Federal Deposit Insurance Corp. has terminated a consent order previously issued to Community Commerce Bank in Claremont.
The order, issued in April, called for the bank to strengthen its management, boost capital levels and reduce troubled assets.
Founded in 1976, the small bank, which has $289 million in assets, has faced challenges in its commercial real estate loan portfolio.
C-Suite News
Northern Trust Corp., a Chicago-based investment management firm catering to wealthy individuals, announced that Norman Greenidge was named national director of the firm’s professional athlete group. Greenidge is based in Northern Trust’s Westwood office. … Nader Moghaddam, chief executive of Downey’s Financial Partners Credit Union, has joined the board of CU Direct Corp., an Ontario organization providing lending-related services to credit unions. … Signature Group Holdings Inc., a Sherman Oaks company offering special-situation financing, announced that G. Christopher Colville was named chairman. Also, Chief Executive Craig Noell will add the title of president. Signature is the successor to Santa Monica subprime lender Fremont General Corp. … Virtual Piggy Inc., a Hermosa Beach company specializing in online payment systems for children, has appointed actress Sela Ward to its board of advisers. The company also named Joanne Wong head of global marketing. … California United Bank, a small lender in Encino, has promoted Sam Kunianski, Stephen Pihl and William Sloan to executive vice presidents.
Staff reporter Richard Clough can be reached at [email protected] or (323) 549-5225, ext. 251.
