Private equity and distressed debt firm WL Ross & Co is set to challenge moves by US peers JC Flowers, Blackstone Group and The Carlyle Group for deals in the financial services sector after hiring a former banking chief executive.

The private equity firm, which is led by Wilbur Ross, has hired John Kanas, previously the chief executive at New-York based retail bank North Fork, as a senior adviser. Kanas will be responsible for sourcing, restructuring and managing investments in distressed financial services institutions, according to the firm. Kanas will also co-invest alongside WL Ross in restructuring acquisitions.