First Citizens Bank Provides Up to $400 Million for WhiteHawk Funds
Rhea-AI Summary
First Citizens Bank announced that its Asset-Based Lending business will provide up to $400 million in combined financing to WhiteHawk Fund IV and WhiteHawk Evergreen Fund. Managed by WhiteHawk Capital Partners, these funds focus on asset-based loans to private and public companies. The new credit facilities aim to leverage the funds' existing portfolios and provide capital for future growth. Both companies expressed enthusiasm for the ongoing partnership and the expertise involved in arranging the financing.
Positive
- First Citizens Bank provides up to $400 million in financing, indicating strong financial support.
- WhiteHawk Capital Partners can leverage the new credit facilities to grow their portfolios.
- Collaboration strengthens the long-term relationship between First Citizens Bank and WhiteHawk Capital Partners.
- First Citizens' innovative asset-based lending structures aim to reduce funding costs and operational risks.
Negative
- Potential risk of over-leverage if the financed investments do not yield expected returns.
- WhiteHawk Capital Partners' dependency on external financing could indicate vulnerability in self-sustained growth.
- No specific information on interest rates or terms, which may concern some investors looking for transparency.
News Market Reaction
On the day this news was published, FCNCA declined 1.46%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Both funds are managed by WhiteHawk Capital Partners, which seeks to earn attractive returns by sourcing and structuring asset-based loans to private and public companies. The credit facilities leverage the funds' existing portfolios and provide capital for future growth.
"We are pleased to continue our relationship with First Citizens Bank. The new credit facilities enhance our ability to continue to execute our direct lending, asset based strategy for the Fund IV and Evergreen vehicles," said Robert Louzan, Managing Partner of WhiteHawk Capital Partners. "We greatly appreciated the expertise and responsiveness of the First Citizens team in arranging the financing for these funds."
"WhiteHawk Capital is well-known for its success in extending asset-based financing to select borrowers," said Chris Esposito, managing director and group head for First Citizens' Asset-Based Lending business. "We were pleased to again collaborate with the WhiteHawk team in arranging these credit facilities and look forward to supporting future opportunities as they arise."
First Citizens Asset-Based Lending business meets clients' working capital needs by offering innovative structures that reduce funding costs and lower operational risks while improving earnings by leveraging accounts receivable, inventory or fixed assets as collateral.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com
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SOURCE First Citizens Bank
FAQ
What is the recent financing deal between First Citizens Bank and WhiteHawk Capital Partners about?
How much financing is First Citizens Bank providing to WhiteHawk Capital Partners?
What are the funds managed by WhiteHawk Capital Partners that are receiving the financing?
What is the purpose of the $400 million financing from First Citizens Bank?
How does First Citizens Bank's Asset-Based Lending business benefit from this deal?
