Private-Equity Firms, Funds Take New Look at Ailing Banks

Capital-hungry banks are suddenly attracting new interest from private-equity firms and hedge funds.

At least two private-equity firms are considering investments in BankUnited Financial Corp., based in Coral Gables, Fla., which is saddled with a large portfolio of adjustable-rate mortgages, according to people familiar with the situation. MatlinPatterson Global Advisers LLC and Kelso & Co. are conducting due diligence on BankUnited and consulting with regulators, these people said.

MatlinPatterson, which rescued Thornburg Mortgage Inc. from the brink of bankruptcy earlier this year with an infusion giving the New York private-equity firm a 40% stake in the home-mortgage finance company, also ...