22 April 2019

PE firms burn their fingers with Taiwan banks, report says

Investments made by private-equity firms more than five years ago in Taiwan’s fragmented banking sector are underwater, with stocks of the lenders now trading far below the cost of purchase, Bloomberg News reported Thursday. Anemic loan growth, poor margins and an elusive mainland market led to the grim situation, it said. Cosmos Bank Taiwan, controlled by a buyout firm owned by Steven A. Cohen’s SAC Capital Advisors LLC, has lost 66 percent since the end of 2007, while Ta Chong Bank Ltd., which is backed by Carlyle Group, declined 9.5 percent, and EnTie Commercial Bank, whose owners include Longreach Group Ltd., fell 19 percent in the period, the report said.

– Contact HKEJ [email protected]



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