Private equity giant KKR said on Tuesday it had acquired a $373 million portfolio of prime auto loans from Synovus Bank.

Shares of Synovus Financial, the parent company of the bank, rose 2.8% in extended trading.

KKR, which made the investment through its private credit funds and accounts, said the deal aligns with its asset-based finance strategy.

The sale comes as regional banks shed consumer loan portfolios to reduce risk in rising interest rate environment and look to improve balance sheet liquidity following a sector-wide crisis earlier this year.

In late June, asset manager Ares Management also inked a deal with PacWest Bancorp for a $3.54 billion lender finance portfolio.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D'Silva)