WFC - Wells Fargo to Sell Student Loan Portfolio to PE Firms
Wells Fargo (NYSE: WFC) has announced the sale of its private student-loan portfolio in the first of what could be several divestitures for the bank in the coming months.
The bank did not disclose financial terms of the sale or even the names of the buyers. But Bloomberg, citing anonymous sources, reported that the private equity firms Apollo Global Management (NYSE: APO) and Blackstone (NYSE: BX) are the buyers.
Once sold, the portfolio will continue to be serviced by Firstmark, a division of the student loan company Nelnet (NYSE: NNI) . The balance of Wells Fargo's private student-loan portfolio is about $10 billion, and the portfolio has an average FICO score of 768, according to Bloomberg.
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Wells Fargo to Sell Student Loan Portfolio to PE Firms