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Ares CEO Michael Arougheti predicts more bank deals; Warburg Pincus details recent bank merger

Good morning, Hubsters. MK Flynn here with the Wire.

Since Silicon Valley Bank failed back in March, we’ve been asking our sources what the demise revealed about the vulnerabilities of regional banks – and what the opportunities for private equity firms might be in the sector.

Lately, we’ve been getting some solid answers.

Earlier in July, Warburg Pincus and Centerbridge Partners teamed up on a California bank merger.

Today, we’re featuring an interview with Warburg about the deal.

We’ve also got some comments made by Ares Management’s Michael Arougheti, who predicts more bank consolidation is coming.

Bank merger

As some banks are dropping out of the California market, Warburg Pincus is “closing the vacuum” and pursuing a number of opportunities alongside its co-investor Centerbridge Partners through the merger of Banc of California and PacWest Bancorp, Todd Schell, principal at Warburg, told PE Hub’s Obey Martin Manayiti.

Upgrade to the premium version of the Wire to read the interview.

More bank deals coming

Ares Management’s senior executives anticipate more consolidation in the troubled US regional banking sector, which will create investment opportunities for the Los Angeles-based firm’s private markets business, including real estate and alternative credit, reports PERE’s Aisha Kapoor.

Subscribers to PE Hubcan read comments made byAres co-founder, chief executive officer and president Michael Arougheti about the potential for more bank M&A.

News in brief

Before I sign off, I want to take the opportunity to showcase our steady stream of deal coverage.

For quick takes on deals throughout the day, check out the “News in brief” sections on the right-hand side of our home pages. There, you’ll find deal briefs written by Iris Dorbian and Irien Joseph.

For coverage of PE-backed transactions involving US-based targets, go to PE Hub.

And for transactions involving European targets, go to PE Hub Europe.

That’s all for now. Obey will be back with Friday’s Wire, and I’ll see you on Monday.

Happy dealmaking,

MK

Read the full wire commentary on PE Hub ...

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