Canada Pension Plan Will Buy General Electric PE Arm in $12 Billion Deal

Talks between the Canada Pension Plan Investment Board (CPPIB) and General Electric have advanced since last week, and news has now emerged that a deal is in place for CPPIB to buy the private equity lending arm of GE for $12 billion.

From Reuters:

GE’s Chicago-based Antares unit is the leading lender to middle market private equity-backed transactions in the United States. Over the past five years, Antares has provided more than $120 billion in financing.

“This acquisition exemplifies our strategy to achieve scale in key sectors through platform investments,” said CPPIB’s Chief Executive Officer Mark Wiseman in a statement. “It secures a market-leading business that is exceptionally well positioned.”

[…]

CPPIB said Antares will be a strategic, long-term platform investment for its Credit Investments arm.

CPPIB has invested over $16 billion in leveraged loans, high yield bonds, and mezzanine financings since 2009. The GE deal solidifies its foray into the lending sphere as it looks for investment opportunities for its more than C$264 billion ($213.37 billion) in assets under management.

CPPIB said it expects the deal to close sometime in the third quarter.

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