Latest news with #SignatureBank
Zawya
11 hours ago
- Business
- Zawya
Blackstone deepens CRE bet with $2bln loan purchase from Atlantic Union
Alternative asset manager Blackstone has bought nearly $2 billion worth of commercial real estate loans from regional lender Atlantic Union Bankshares , further extending its aggressive push into the CRE sector. The loans were bought at a slight discount to their face value, the companies said on Thursday. The loans originated from Sandy Spring Bank, which Atlantic Union bought in a $1.6 billion deal in April. The sale enables Atlantic Union to swiftly reduce its exposure to CRE loans, a segment that has been under pressure due to elevated interest rates and increasing office vacancies driven by the rise of remote work. Proceeds from the sale will enable Atlantic Union to pay down costly deposits and expand its portfolio of securities investments, the company said. "We view the sale as a positive, as completion of the transaction at a reasonable price had been a question for some," Raymond James analysts wrote in a note, reiterating their "strong buy" rating on the stock. Meanwhile, for Blackstone, the deal was another opportunity to acquire CRE assets at a discount. The company has been ramping up its exposure to the sector over recent years, notably through the acquisition of a stake in the $17 billion CRE debt portfolio of Signature Bank, a lender that failed in 2023. Blackstone has pushed into the sector to capitalize on banks' retreat, deploy capital and secure higher-yielding investment opportunities. The company is executing the deal through its Blackstone Real Estate Debt Strategies arm, which currently manages $76 billion of assets, including $8 billion it raised in March for one of the largest real estate debt funds ever. Morgan Stanley served as the sole structuring adviser to Atlantic Union, while Citigroup Global Markets and CBRE National Loan & Portfolio Sale Advisors acted as financial advisers to Blackstone. (Reporting by Niket Nishant in Bengaluru; Editing by Mohammed Safi Shamsi and Shinjini Ganguli)
Business Journals
04-06-2025
- Business
- Business Journals
Financing a business acquisition? How one type of loan could help
Acquiring a business is one of the most exciting — and complex — milestones in a business owner's journey. Whether you're a first-time owner or a seasoned investor, how you structure the financing can have long-term implications for value creation and risk. One of the most reliable and cost-effective tools available to business buyers is bank debt. Sometimes bank debt is discussed less than equity or alternative financing sources; however, it plays a foundational role in well-structured acquisitions. Based on my experience working with a wide range of buyers — from individual entrepreneurs to private equity groups — it's clear that bank debt offers a powerful and affordable path to growth, especially when paired with a true banking relationship. Understanding bank debt in the acquisition landscape In acquisition financing, 'bank debt' refers to loans provided by traditional financial institutions, often secured by the assets or cash flow of the target business. This type of financing is generally less expensive than equity or subordinated debt and can help preserve ownership while supporting strategic expansion. You may also hear the term 'senior debt' used interchangeably. In technical terms, senior debt refers to the portion of a company's capital structure that has priority in repayment — typically bank loans. For most business acquisitions, especially those led by individuals or family offices, the practical distinction is minimal. What's important is that bank debt represents lower-cost capital with a clear repayment structure. Structuring an acquisition: Real-world examples While no two acquisitions are alike, common patterns emerge in how deals are financed — often combining several forms of capital. Here are a few recent Signature Bank examples that illustrate the versatility and impact of bank debt: Accelerator-backed individual buyer. In one case, a buyer backed by an accelerator program — typically composed of experienced professionals, often with MBAs or military backgrounds — identified a promising acquisition. The structure included personal capital from the buyer, equity from the accelerator and a senior secured loan from the bank. The result was a disciplined capital stack that preserved flexibility and maintained growth capacity after closing. Entrepreneur-led purchase with seller financing. Another example involved an individual purchasing a Wisconsin-based business valued at $7 million. The buyer contributed $700,000 of equity, obtained $5 million in bank financing, and negotiated a seller note for the remaining balance. This structure balanced risk between parties and created a clear path to ownership transition and debt service. Institutional acquisition with layered capital. In a larger transaction, an investment group acquired two long-standing food production manufacturers for $50 million. The group raised $20 million in equity, obtained $20 million in bank financing and secured an additional $10 million through mezzanine debt. The depth of historical cash flow and the group's operational experience supported this multi-layered structure. Across each of these scenarios, bank debt served as the foundation — anchoring the deal with cost-effective, repayable capital and enabling the buyer to avoid overleveraging or unnecessary equity dilution. Why relationships still matter Financing a business acquisition is about more than balance sheets and interest rates — it's about trust, timing and having a strategic partner who understands the full picture. One of the greatest advantages of working with a real relationship banker is that business owners don't just receive financing — they gain a relationship with a banker who is committed to helping them succeed. If your banker is only discussing cash flow and collateral, you might not have a real relationship. When I work with a client, I focus first on listening: Who are you as a buyer? What is the story behind the business you are acquiring? What is your vision for the next stage of growth? That understanding helps us structure deals that match real-world business goals, more than just financial formulas. It also allows us to move quickly when timing is critical, which can make or break an acquisition opportunity. Sometimes we lightheartedly joke with clients, 'We're the only partner in your acquisition journey who doesn't send a bill.' A genuine banking partner adds value in numerous ways — such as providing access to a trusted network of legal, accounting and advisory professionals who can assist with due diligence, transaction execution and post-close planning. Because our involvement continues well beyond the closing, clients benefit from an enduring relationship they can rely on, not merely a one-time transaction. Financing the next chapter of your business story There's no one-size-fits-all approach to financing an acquisition. Some deals require simplicity; others call for layered capital. What remains consistent is the role bank debt can play in anchoring the structure — offering lower cost, reduced dilution and a clear repayment path supported by the acquired business' own performance. For business owners evaluating their next move, it's worth considering bank financing not just as a source of capital, but as part of a broader strategy to grow with discipline and preserve value. To learn more about structuring smart acquisition financing, contact Erik Doucette at Signature Bank. Founded in 2006, Signature Bank is a privately held state-chartered bank in Illinois and Wisconsin. As a relationship-based commercial bank, we provide unmatched customer service while operating our business carefully and conservatively. Technology-driven and well-capitalized, Signature Bank is one of the fastest-growing independently owned business banks in the Midwest and has been named on American Banker's list of "Best Banks to Work For" for seven consecutive years. Reach out to info@ to learn more. Erik Doucette is vice president of Commercial Banking at Signature Bank. He brings more than 20 years of experience helping business owners and investors structure financing solutions for acquisitions, growth and succession. Based in Milwaukee, Doucette specializes in relationship-based banking with a focus on thoughtful, tailored capital strategies.
Yahoo
10-04-2025
- Business
- Yahoo
Signature Bank partners with Q2 to enhance digital banking capabilities
Signature Bank, based in Chicago, has teamed up with Q2 Holdings to enhance its digital banking offerings for both commercial and retail customers. This partnership will empower Signature Bank to offer a consistent experience across all digital channels through the integration of Q2's solutions. Signature Bank senior vice-president Penny Foust said: 'We really needed a ubiquitous, device-agnostic platform to deliver a consistent, 360-degree experience. 'Right out of the gate, Q2 rose to the top. We were very impressed with Q2's innovation and high-touch service, which mirrors our own. Having Q2 as a partner enables us to deliver the top technology available and compete with the big banks.' The collaboration also includes the use of Q2's Innovation Studio, which will facilitate the integration of fintech solutions into Signature Bank's services. Signature Bank will utilise Q2's tools such as Q2 Centrix Exact/TMS and Q2 Sentinel to identify and prevent fraudulent activities. Q2 Product Management vice-president Anthony Ianniciello said: 'We are thrilled to partner with Signature Bank to help enrich the digital experience for their customers. 'Signature Bank has built a reputation as a commercial bank that focuses heavily on service and relationships, and their customers value the personal, high-touch approach to banking. 'We are excited to enable them to extend this commitment to their customers through a personalised digital banking experience.' In January, Q2 Holdings collaborated with Alloy to offer a fraud monitoring solution for its digital banking customers. "Signature Bank partners with Q2 to enhance digital banking capabilities" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Banks' Spot Crypto Holdings Continue to Collapse as Firms Move to ETPs
Banks across the globe held a total of 341.5 billion euros ($368.3 billion) in crypto assets under custody in the second quarter of 2024 but spot crypto assets now make up less than 3% of banks' holdings — down significantly from a few years ago, data by standard setter Basel Committee on Banking Supervision (BCBS) showed on Wednesday. BCBS, which focuses on setting measures to ensure the stability of banks, gathered voluntary and confidential submissions from 176 banks — of which 115 are internationally active — in June 2024. The data showed that just 29 banks contributed to the 341.5 billion euro figure, and the vast majority hold exchange-traded products tracking crypto over cryptocurrencies. Global watchdogs have been keeping a close eye on how interlinked the financial sector is with crypto following the collapse of crypto-friendly banks like Signature Bank and Silicon Valley Banks in 2023. The BCBS also recommended that banks' spot crypto exposure should not exceed 2% in December 2022. Banks appear to be following through on this; their exposure to spot crypto holdings fell 44% between 2021 to 2022. As of the June 2024 survey, banks held almost no spot crypto, at 2.46%, instead preferring exchange-traded products. About 92.5% of banks' holdings are now in these more regulated products tracking crypto prices, rather than crypto assets themselves, the BCBS survey showed. Read more: Blackrock to List Bitcoin ETP in First Crypto Foray Outside of U.S. Sign in to access your portfolio
