PacWest sells $3.5 billion loan portfolio to PE firm Ares
2023.06.26 07:18
© Reuters. FILE PHOTO: A general view of Pacific Western Bank in Huntington Beach, California, U.S., March 22, 2023. REUTERS/Mike Blake
(Reuters) – PacWest Bancorp has sold a $3.5 billion specialty finance loan portfolio to Ares Management (NYSE:), in an attempt to boost liquidity at the U.S. regional lender after a recent banking crisis sparked by an industry-wide bank run.
The loans were sold to funds managed by Ares’ alternative credit arm, the private equity firm said on Monday, adding that Barclays (LON:) provided the funding.
Over the past month, Los Angeles-based PacWest has also sold its real estate lending unit and a huge chunk of its real estate loans.
PacWest, along with other regional lenders, seems to have recovered its poise after a tense few weeks in the aftermath of the collapse of three U.S. banks. Shares of the bank rose 4.4% at $7.55 in premarket trading and were up nearly 5% over the past month.
