Wells Fargo & Company (WFC.US) partnered with Centerbridge Partners to carry out a loan business totaling $48 billion.

According to reports, Wells Fargo & Company (WFC.US) has completed a $2 billion direct loan transaction with private equity firm Centerbridge Partners so far this year, bringing the total amount of deployed funds to $4.8 billion. Overland Advantage, controlled by Centerbridge Partners, has completed nine transactions with Wells Fargo & Company, including providing senior secured term loans to beverage distributor Southern Crown Partners and Hand Family Cos. Overland Advantage is managed by an entity controlled by Centerbridge Partners, with Wells Fargo & Company holding a non-controlling minority interest. Overland began investing in the second quarter of last year. The two parties have completed 16 transactions, primarily with non-private equity-owned North American companies. Bill Neuenfeldt, Senior Managing Director and Chief Operating Officer of Centerbridge, said: "The owners of these businesses may not be as familiar with private credit, but Overland allows us to introduce this service to them through individuals they have known for many years." As the merger and acquisition market continues to be slow, banks and private credit institutions are expanding their businesses to find deal opportunities. In theory, cooperation between the two can provide broader opportunities for lending institutions. David Marks, Executive Vice President of Commercial Banking at Wells Fargo & Company, said: "These clients need direct loan solutions, which we could not provide before the establishment of Overland." As banks cede market share to private credit institutions, cooperation between banks and direct loan institutions has emerged in various forms. Banks have stricter lending requirements and their risk appetite differs from non-bank Financial Institutions, Inc. Marks said: "To be successful, we need to coordinate interests among all parties. For this reason, we often have candid discussions and develop appropriate loan structures for borrowers."