PNC Financial Services’ banking unit said that it had bought a portfolio of capital commitments from Signature Bridge Bank worth $16.6 billion in an agreement with the Federal Deposit Insurance Corp as receiver.
The portfolio comprises fund subscription credit lines extended to private equity firms to help manage liquidity and bridge financing for investments and includes $9 billion of funded loans.
“PNC has long participated in the capital commitments business and the acquired portfolio is highly complementary,” the bank said in a statement.
The popularity of credit vehicles has soared over the past decade among PE and private real estate investment firms.
The transaction, to be funded with cash on hand, is expected to immediately add to PNC’s earnings, and will represent about 10 cents per share in the fourth quarter of 2023, PNC Bank said.
PNC Bank purchased these commitments and loans without any funding, guarantees or loss-sharing agreements from the FDIC, the company added.
The FDIC closed Signature Bank in March amid an intensifying regional banking crisis and transferred all of its deposits and substantially all of its assets to Signature Bridge Bank, a full-service financial institution that is operating under a board appointed by the watchdog.