Wintrust eats up more of GE Franchise Finance

Wintrust Financial Corporation has announced that the franchise finance group of its subsidiary Lake Forest Bank and Trust Company has signed a definitive agreement to acquire approximately $581 million in performing loans and related relationships from an affiliate of GE Capital Franchise Finance.

The loans are to franchise operators (primarily quick service restaurant concepts) in the Midwest and in the Western portion of the US, and form part of GE Capital’s strategy for divesting its non-core operations.

Wintrust Franchise Finance exclusively serves the needs of franchise operators and franchisors. It has been in existence for 15 years and currently serves more than 100 clients nationwide.

Edward Wehmer, president and CEO of Wintrust said: “This transaction represents the continued strategic expansion of our franchise finance business. It is a business we know well and the loans acquired are to firms that, in most cases, are well known to our experienced staff. We look forward to continuing to serve the franchise finance market.”

GE announced a plan in April 2015 to focus on its high-value industrial businesses and sell most GE Capital assets not linked to GE’s core industrial businesses. GE Capital Franchise Finance has been a top provider of credit to franchise operators and GE has said it plans to sell its franchise finance assets to a select group of financial services providers with experience in the area.