Finance
PacWest Sells Loans as Private Credit Firms Eye Bank Assets
- First tranche closed last week and generated $2 billion
- Deal follows sale of $5.7 billion portfolio to Kennedy Wilson
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PacWest Bancorp sold a $3.5 billion asset-backed loan portfolio to Ares Management Corp., the latest example of a bank seeking to improve liquidity by selling assets to private investment firms.
Ares’s Alternative Credit funds bought the specialty finance portfolio backed by assets including consumer loans, mortgages and timeshare receivables, the fund manager said in a statement Monday. PacWest said in a filing that the first tranche of the deal closed last week and generated $2 billion of cash proceeds before transaction costs.