Citizens Private Bank is rolling out personal loans collateralized by GP and LP interests in venture capital and private equity funds, pushing into the maturing credit market for cash-strapped investors, the bank told PitchBook.
Previously, Citizens’ GP-specific loans were exclusively secured against future GP commitments, limiting their use to funding managers’ subsequent funds. The new offering, which adds LPs as eligible borrowers, can be tapped for much broader and personal purposes. A borrower, for instance, can take out a mortgage or pay off a tax bill.
The private wealth unit of Citizens Financial Group is imposing a minimum of $250,000 in a bid to tap the lower end of the market where private credit behemoths are less active. There’s no set maximum on the all-weather products, according to Scott Aleali, Citizens Private Bank’s head of private equity finance.
