PRIVATE EQUITY Wilbur Ross plans push into subprime

Discussion in 'Wall St. News' started by ASusilovic, Aug 22, 2007.

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    Wilbur Ross, the US financier who specialises in distressed businesses, is planning a push into subprime mortgages in a sign the credit turmoil is opening up opportunities for bargain-hunting, risk-taking investors. In an interview with the Financial Times, Mr Ross said the subprime market, which has been ravaged by rising defaults and mounting problems at mortgage lenders, was a new focus for his private equity firm, WL Ross.

    He said WL Ross, which has about $3.5bn under management, was also looking at investing in German small and medium-sized companies after the subprime-related problems at two banks serving the country’s Mittelstand. Mr Ross said his exposure to the subprime market, which focuses on high interest rate loans to borrowers with poor credit histories, could come through acquisitions of lenders, mortgage portfolios or even companies that service loans