Carlyle has bought 7.7 billion dollars of consumer loans from Truist Financial, Bloomberg reported on Friday. The figure is the size of the loan portfolio changing hands, not a disclosed purchase price, and neither side published terms alongside the report.
The sale fits a pattern set since chief executive Michael Lyons took over at Truist on September 1. In September the bank agreed to sell about 5.5 billion dollars of near-prime auto loans from its Regional Acceptance subsidiary, essentially exiting that business, after its non-performing indirect auto loans reached 569 million dollars in the second quarter, about a third of the bank’s total non-accruing assets.
For Carlyle, consumer loan portfolios are a core private credit product: seasoned, diversified books bought from banks that would rather hold capital against other lending. The trade underlines how much of US consumer credit now migrates from regulated bank balance sheets to asset managers, loan by loan and portfolio by portfolio.
This story ships at grade C. The transaction is single-sourced to Bloomberg’s report and no price, discount or closing timetable has been disclosed by either company.