Private equity firms eye BankUnited: report

(Reuters) - Two private-equity firms are considering investments in BankUnited Financial Corp (BKUNA.O: Quote, Profile, Research, Stock Buzz), weighed down by a huge portfolio of adjustable-rate mortgages, The Wall Street Journal said citing people familiar with the situation.

MatlinPatterson Global Advisers LLC and Kelso & Co are conducting due diligence on BankUnited and consulting regulators, these people told the paper.

MatlinPatterson, which rescued mortgage lender Thornburg Mortgage Inc (TMA.N: Quote, Profile, Research, Stock Buzz) from the brink of bankruptcy earlier this year, is also weighing pumping money into Downey Financial Corp (DSL.N: Quote, Profile, Research, Stock Buzz), the paper said.

It was not clear if any of the potential investments would materialize, the Journal added.

Earlier this year, BankUnited rejected overtures from private-equity firms that had expressed interest in providing new capital, the paper said, citing people familiar with the situation.

Instead, BankUnited decided to try to raise about $400 million in the public markets. A lukewarm response forced the company to shelve those plans about a month ago, these people told the paper.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Paul Bolding)