White Oak Buys $700M Loan Portfolio From Capital One

A White Oak Global Advisors unit has purchased $700 million of health-care-related real estate loans from Capital One Financial Corp., stepping up the alternative asset manager’s lending commitment to the industry.

White Oak Healthcare Finance bought the portfolio of skilled nursing and seniors housing loans from the bank’s health care group for undisclosed terms, according to a December 19 statement from the alternative lender. Capital One provided debt financing for the deal.

“Our team has significant experience in health care real estate and, with this transaction, we continue our rapid growth as we become one of the largest lenders in the space,” Isaac Soleimani, White Oak managing director and partner, said in the statement.

The shadow banking system is expanding as investment firms increasingly provide loans to companies that traditionally have turned to banks for financing. White Oak Healthcare Finance lends to all subsectors of the industry, including pharmaceuticals and life sciences, medical devices, technology, and hospitals. 

[II Deep Dive: White Oak Plans to Raise as Much as $2.5 Billion for Direct Lending Fund]

The deal with Capital One helps the firm continue its “aggressive growth strategy” as an alternative lender in health care while allowing the bank to “change the nature of some of our skilled nursing exposure,” said Jim Seymour, senior managing director of Capital One Healthcare, in the statement.

White Oak Healthcare, which provides such financing as term loans and asset-based loans, typically holds its positions until the debt matures, according to the statement. The lending unit said it has “large pools of capital to deploy” and that it would like to continue working with Capital One on deals. 

“Capital One and their talented real estate team have been valued partners of White Oak and we are excited to continue growing the relationship,” Soleimani said.