The buyer of GE Capital Sponsor Finance is “more and more looking like a non-regulated entity," a source inside General Electric (NYSE: GE) tells Mergers & Acquisitions. The same regulatory hurdles that prompted the sale will likely deter bank buyers.

GE CEO Jeffrey Immelt announced on April 10 that the company would divest GE Capital to refocus on its industrial businesses and to aid in shedding its status as a Systematically Important Financial Institution. Sources have predicted that the Sponsor Finance unit, which makes loans to private equity-backed middle-market companies and includes the highly respected GE Antares unit, would sell first and quickly.

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