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Asset Sales

Joint Venture Transaction

Last Updated: June 7, 2024
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A “Joint Venture Transaction” is a partnership between the FDIC as receiver for one or more failed banks and a private sector partner. The partnership facilitates the disposition of failed bank assets, typically real estate-secured loans. The partner and the receiver have a financial interest in the assets. The private sector partner has responsibility for day-to-day management of the assets. Both share in the risks and costs associated with the disposition of the assets.

 

 

Joint Venture Transaction Event(s)

Description Date(s) Location

There are no joint venture transaction event announcements at this time.

Mechanics of a Joint Venture Transaction

The FDIC as receiver forms a limited liability company (LLC), conveys assets from one or more failed banks to the LLC and becomes the owner of all the equity in the LLC. A portion of the equity in the LLC, typically 20-40 percent, is offered in a sealed-bid auction. The FDIC may offer an interest in the joint venture transaction on a leveraged or unleveraged basis. The winning bidder becomes the private sector partner.

Notification and Qualification

Parties interested in participating in joint venture transactions may request that they be included on a list of “prospective bidders” to receive sale announcements. Once a sale is announced, prospective bidders will be required to meet qualification criteria specific to the transaction to gain access to due diligence material. Prospective bidders must also demonstrate their financial capacity and expertise in managing and disposing of asset portfolios as an additional qualification to bid.

Notification

Learn more about how to receive notification of joint venture transaction opportunities.

Transaction-Specific Qualification

Learn more about the requirements to receive information on a specific joint venture transaction.

Bidder Qualification

Learn more about the criteria to be eligible to a bid in a joint venture transaction.

To ensure a diversity of participation, the FDIC welcomes and strongly encourages minority-owned and women-owned entities to participate individually or as a partner with other entities in the FDIC’s Joint Venture Transaction Program.

Closed Joint Venture Transactions

Find closed joint venture transaction information from 2008 to present.

FDIC Closed Joint Venture Transactions

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