PE firm KKR acquires $373 mln portfolio of Synovus Bank's prime auto loans

Synovus Financial

08/08/2023 22:30

Aug 8 (Reuters) - Private equity giant KKR  KKR.N  said
on Tuesday it had acquired a $373 million portfolio of prime
auto loans from Synovus Bank.
    Shares of Synovus Financial  SNV.N , 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  ARES.N  also
inked a deal with PacWest Bancorp  PACW.O  for a $3.54 billion
lender finance portfolio.
    

 (Reporting by Manya Saini in Bengaluru; Editing by Anil
D'Silva)
 ((Manya.Saini@thomsonreuters.com;))