Published On: Thu, May 7th, 2015

Blackstone, Ares Front-runners for GE’s PE Lending Business

(L-R) Stephen Schwarzman ,  Leon Black,

 

Private equity giants like Blackstone, Apollo, Ares management and KKR were reported to be in the foray for General Electric’s private equity lending business by Bloomberg last month, as GE unveils an ambitious plan to reorganize its financial arm.

The latest move is part of GE’s CEO Jeff Immelt’s strategy to spin off or sell most of GE Capital, which in his assessment was adversely affecting the company’s overall business performance.

GE’s private equity lending business is estimated to be worth $200 billion and the first round of bidding is expected to start on Thursday. GE Antares Capital is the biggest player in GE’s private equity lending business, has a lending range of $30 million to more than $500 million.

GE -sells-lending-business-

Other GE divisions up for grabs are the company’s commercial financing unit, global consumer business, as well as its fleet financing services. Leading North American and Asian financial institutions have expressed their interest in GE’s commercial financing business.

According to Financial Times, Blackstone, which has already picked up GE’s real estate assets, is considered as the strongest contender for GE’s private equity lending business. Ares too is widely regarded as a good fit for the acquisition, given its strengthens in operating a business model similar to GE’s.

 

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