© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo
(Reuters) – Private equity giant KKR said on Tuesday it had acquired a $373 million portfolio of prime auto loans from Synovus (NYSE:) Bank.
Shares of Synovus Financial, the parent company of the bank, rose 2.8% in extended trading.
KKR, which made the investment through its private credit funds and accounts, said the deal aligns with its asset-based finance strategy.
The sale comes as regional banks shed consumer loan portfolios to reduce risk in rising interest rate environment and look to improve balance sheet liquidity following a sector-wide crisis earlier this year.
In late June, asset manager Ares Management (NYSE:) also inked a deal with PacWest Bancorp for a $3.54 billion lender finance portfolio.
Read the full article here