Loans – Apollo, Blackstone Stated in Talks to Purchase Wells’ Scholar loan E-book
A gaggle that features non-public fairness companies Apollo International Administration Inc. and Blackstone Group Inc. is in talks to accumulate Wells Fargo & Co.’s scholar loan portfolio, in line with folks acquainted with the matter.
The events might attain a deal inside weeks, mentioned one of many folks, who requested to not be recognized as a result of the matter isn’t public. A remaining choice hasn’t been made and discussions might nonetheless fall by means of, the folks mentioned.
The loans, whose debtors have a median FICO rating of 768, rank as prime quality and can be serviced by Nelnet Inc., the coed loan servicing agency, one of many folks mentioned.
It isn’t clear how a lot the portfolio will fetch in a sale. It consists of about $10 billion in scholar loans, an individual acquainted with the matter mentioned in October.
Representatives for Apollo, Blackstone and Wells Fargo declined to remark.
The potential sale comes as Wells Fargo pares down its property after years of scandals. It’s additionally been exploring a sale of its company belief, asset administration and private-label bank cards companies, Bloomberg Information has reported.
The bank mentioned in an earnings name in October that it was exiting the coed loans enterprise.
— With help by Hannah Levitt