Wells Fargo & Co. said Monday it had agreed to buy WestLB’s subscription finance portfolio. The portfolio contains about $6 billion in commitments (approximately $3 billion outstanding). Financial terms were not disclosed. Subscription finance provides committed revolving and term loans as well as letters of credit mainly to private equity and real estate investment funds, the statement said. Dee Dee Sklar, former head of WestLB’s subscription finance group, will run the Wells Fargo subscription financing business.
Wells Fargo & Company (NYSE: WFC) today 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.
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.”
“Subscription finance clients include some of the industry’s strongest fund managers who have commitments from high quality institutional investors,” said Mary Katherine DuBose, head of Corporate Debt Finance. “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.”
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 DuBose. Sklar will lead a team of 14, including 8 former WestLB employees.
The transaction is expected to close by the end of the second quarter of 2012.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and other distribution channels across North America and internationally. With more than 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.