Blackstone has agreed to purchase $1.1bn (£867m) price of bank card receivables from Barclays, because the British financial institution seems to maneuver sure belongings off its steadiness sheet.
The excellent receivables are in relation to accounts within the US and the sale is the primary in a collection of actions to cut back Barclays’ risk-weighted belongings and create extra lending capability for Barclays Financial institution Delaware.
Learn extra: Blackstone elevating $400m to spice up non-public credit score fund
The deal was achieved by Blackstone Credit score & Insurance coverage, which was shaped in September, to mix the alternate options big’s company credit score, asset-based finance and insurance coverage teams right into a single unit.
Blackstone will make the funding on behalf of its insurance coverage shoppers and Barclays Financial institution will make investments into the deal alongside these accounts.
Learn extra: Blackstone sees development in non-public credit score funds in fourth quarter
“Throughout our investor replace, we mentioned that we’d leverage strategic partnerships to execute threat switch agreements to cut back capital necessities. I’m delighted to announce this primary settlement in our US playing cards ebook,” commented Anna Cross, group finance director at Barclays.
Robert Horn, international head of infrastructure and asset based mostly credit score at Blackstone, added: “This collaboration demonstrates how we’re supporting main monetary establishments with large-scale, long-term, environment friendly capital options within the asset based mostly finance markets. Barclays has a premiere franchise in structured merchandise and client banking and we sit up for working with them within the coming years to develop the partnership.”
Earlier final yr, Blackstone president Jon Grey had mentioned that he sees alternatives to associate with regional banks at scale. In an earnings name he added that Blackstone may assist banks with a few of their lending and mentioned the group was in a variety of discussions.
Learn extra: Blackstone and BNP Paribas associate on retail non-public debt fund
