It’s official Canada’s largest pension fund, Canada Pension Plan Investment Board, is buying GE Capital’s Sponsor Finance Unit, which includes GE Antares, from GE Capital for $12 billion. The deal marks CPPIB’s entry into U.S. middle-market loans.
The Sponsor Finance group, which is headquartered in Chicago, makes loans to private equity-backed companies. GE Antares has relationships with more than 300 private equity firms. During the past five years, the group has made more than $120 million worth of loans. The unit, a crown jewel in GE Capital’s lending portfolio, is one of the reasons the firm was named Mergers & Acquisitions M&A Mid-Market Lender of the Year for 2014 and for 2010.