Wells Fargo Acquires WestLB $6B Subscription Loan Portfolio
Wells Fargo announced that it has reached a definitive agreement to acquire WestLB’s subscription finance portfolio. The portfolio contains approximately $6 billion in commitments (approximately $3 billion outstanding). Terms of the agreement were not disclosed.
Dee Dee Sklar, former head of WestLB’s subscription finance group, has been hired to run Wells Fargo’s subscription finance business and will report to Mary Katherine DuBose, head of Corporate Debt Finance. Sklar will lead a team of 14, including eight former WestLB employees.
“Subscription finance clients include some of the industry’s strongest fund managers who have commitments from high quality institutional investors,” said DuBose. “In addition to continuing to provide subscription finance services to these clients, we look forward to being able to offer them our full suite of banking products and services.”
The transaction is expected to close by the end of the second quarter of 2012.
Subscription finance provides committed revolving and term loans as well as letters of credit mainly to private equity and real estate investment funds to facilitate the funds’ investment activities. The financing is secured by the uncalled capital commitments from the funds’ institutional investors.
“We have been growing our subscription finance business organically for many years,” said Julie Caperton, head of Asset-Backed Finance and Securitization. “This acquisition enhances our position in the marketplace and provides our clients with dedicated customer service as well as Wells Fargo’s strength, stability and broad product set.”