Subscription line lenders
Looking for financing on committed capital to an opportunity fund. Anyone know which banks are still active ? Sponsor with great track record, credit investors - looking for a $10-20mm facility.
Looking for financing on committed capital to an opportunity fund. Anyone know which banks are still active ? Sponsor with great track record, credit investors - looking for a $10-20mm facility.
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Hard to say, but I think best bet is to reach out directly to your bank contacts, ideally your 'relationship banks' assuming you have some. Cap1, Wells, PNC, JPM, BofA, and USB all come to mind for subscription lending, no idea how active they are though.
$10-20mm is pretty small which should open up more options/no need to syndicate, but might be too small for big banks. In terms of general RE lending production, seems like most banks (including the one I work at) that were 'on pause' at the end of '22 are still in the same position until new allocations/budgets are finalized and/or more payoffs happen.
Luckily, sublines are obviously easier to get approved and banks typically like them for the attractive risk/return profile and simplicity. We closed a handful in December '22 even though we weren't doing anything else; however, they were for existing clients we had valued relationships with. There is a big push to focus on 'relationship lending' vs. pure production, along with the push for ancillary business (i.e. deposits, treasury services, capital markets fees, etc.) in exchange for credit.
Wells is still pretty active.
Surprised to hear this. We have done four sub lines with Wells over the past 10 years and have a great relationship with them. Last week they essentially told us to look elsewhere for our upcoming fund.
This is with a strong track record too (averaging ~19% / 2.0x (gross) on equity funds, ~13% / 1.5x on credit funds). Mix of institutional and HNW LP's (about 50/50), most of which were invested in our last three funds.
Try Standard Chartered.
Agree, with SC, also try TD.
We are still relatively active for sublines of that size. Shoot me a DM (can you even DM on here), we may not be able to help but I have connections across banks that I can forward you to.
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HSBC / Lloyds / Natwest / Santander / CIC / Northleaf / Blackrock all do Mid-market holds in that range. Contact the Mid-Market financial sponsor teams at those places.
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