General Electric’s $12 Billion PE Lending Sale Hastens Financial Services Exit
ByGeneral Electric GE +0.33% said on Tuesday morning it will sell its sponsor finance unit, GE Antares, and a $3 billion portfolio of bank loans to the Canada Pension Plan Investment Board (CPPIB), a Toronto-based pension fund that manages $264 billion in assets on behalf of over 18 million Canadian pensioners.
The divestiture by GE follows CEO Jeff Immelt’s decision in early April to put up most of the industrial conglomerate’s GE Capital businesses up for sale, effectively undoing a push by Jack Welch to diversify into financial services during the 1990s. The decision, cheered on by shareholders and analysts, came amid heightened regulatory scrutiny into GE Capital. The division was facing the prospect of being designated a so-called ‘systematically important financial institution,’ or SiFi, potentially putting it under the Federal Reserve’s purview as part of the 2010 Dodd Frank Act…
General Electric’s $12 Billion PE Lending Sale Hastens Financial Services Exit
