Financial Services  

Wells Fargo to buy subscription finance business

San Francisco-based bank appoints Dee Sklaras to run its subscription business
 Wells Fargo to buy subscription finance business

Wells Fargo Tuesday said it has decided to buy a subscription finance portfolio with $6 billion in commitments from WestLB, and the European commercial bank based in Germany, the news reports said.

San Francisco bank like its competitors has been choosing to acquire niche businesses, like specialty lenders, asset management companies, insurance brokerages, rather than whole banks.

In more than three years, Wells Fargo has not made any whole banking acquisition. The bank said, financial terms of the deal, which is expected to close in the second quarter, were not disclosed.

The subscription financing provides revolving and term loans in addition to the letters of credit mainly to private equity and real estate investment funds.

Head of asset-backed finance and securitization, Julie Caperton said, “We have been growing our subscription finance business organically for many years.” Caperton also said, “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.”

The global bank has appointed the former head of West LB’s subscription finance group Dee Sklaras to run its to run its subscription business.

Sklar will be reporting to Mary Katherine DuBose, the head of corporate debt finance for Wells Fargo and will be leading a team of 14 which also includes 8 former West LB employees.

Wells Fargo is an American multinational diversified financial services company having operations worldwide. It is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization.

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