Toll and Oaktree Capital Management Reportedly Win Distressed Asset Auction

Oaktree Capital Management, in partnership with luxury builder Toll Brothers, is said to have won an auction for the $1.7 billion asset portfolio of the seized AmTrust Bank from the Federal Deposit Insurance Corp. (FDIC), according to the Financial Times. Neither Toll Brothers nor Oaktree Capital would comment on the reported deal, and the FDIC has not issued an announcement of the sale. Wells Fargo Securities Senior Analyst Carl Reichardt on Thursday issued a research note to investors that speculated on what might be included in the deal. "Based on conversations with industry contacts, we believe the portfolio includes a geographical mix of largely residential land, with concentrations in Florida, California, Arizona, and Las Vegas," he wrote. "Our contacts believe the portfolio has at least some higher-quality assets, but also contains large undeveloped parcels." Cleveland-based AmTrust Bank was closed in December by the Office of Thrift Supervision, which appointed the FDIC as receiver. In October, AmTrust's total assets were listed at $12 billion with total deposits at $8 billion.

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