Wells Fargo, Centerbridge in US$5bil lending fund

The move highlights the increasing intertwining of private capital providers and traditional banks in offering credit to companies and consumers since the global financial crisis. — Reuters

NEW YORK: Wells Fargo is teaming up with private equity firm Centerbridge Partners to launch a fund with the capacity to lend more than US$5bil to North American middle-market companies, the groups say.

The move highlights the increasing intertwining of private capital providers and traditional banks in offering credit to companies and consumers since the global financial crisis, as heightened regulation and costs have forced banks to reevaluate the types of loans and services they provide.