One of the United Kingdom's largest hedge funds has approached Washington Mutual and offered to participate in any consortium looking to recapitalise the mortgage lender, a person familiar with the matter said.

This week, London-based Toscafund Asset Management LLP approached the board of Washington Mutual to offer to invest its own money and help any consortium to recapitalise the lender, this person said. Tosca, which has about $8bn under management and is part of Old Oak Holdings Ltd., a group with $12bn under management, already controls a sizable share of the US firm.