Oak Hill Capital and Carlyle Financial Services each reported 493 million shares, or 23.37% activist stake in FNB United Corp (FNBN) on October 31th. The two firms did not own any share in FNBN in the second quarter. On October 24th, FNB United Corp completed its acquisition of Bank of Granite Corp, and consummated a $310 million recapitalization. Oak Hill Capital and Carlyle Financial Services are the leading investors in the recapitalization, each having invested about $79 million.
Oak Hill Capital is a private equity firm based in New York, New York. The firm has more than $7 billion of committed capital from leading entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Robert Bass is the lead investor. Oak Hill Capital is under Oak Hill partnerships which comprise over $18 billion of investment capital.
Carlyle Financial Services is under Carlyle Group, which is a global asset management firm specifying in private equity. Carlyle Group ranked as the third largest private equity firm in the world in 2011. The group has $150 billion under management diversified over 84 distinct funds as of 2010.
FNB United Corp is a bank holding company. It owns bank subsidiaries including CommunityONE Bank and National Association. Through its subsidiaries, the company offers regular checking accounts, interest checking accounts, money market accounts, savings accounts, certificates of deposit, individual retirement accounts, debit cards, credit cards, and loans. The company recently acquired Bank of Granite Corporation.