BUSINESS

GE selling US Sponsor Finance business, $3B bank loan portfolio in $12B transaction

06/09/2015 07:00 EDT | Updated 06/09/2016 05:59 EDT
NEW YORK, N.Y. - General Electric Co. is selling its U.S. Sponsor Finance business in a deal valued at about $12 billion as it refocuses on its core businesses at exits a banking sector with stricter rules and oversight.

The Sponsor Finance business, which includes Antares Capital, GE Capital's lending business to private equity-backed middle market companies, will be sold to the Canada Pension Plan Investment Board, alongside a $3 billion bank loan portfolio.

GE is looking to sell most of the assets of GE Capital over the next 18 months, but plans to keep the financing components that relate to its industrial businesses.

The transaction is targeted to close in 2015's third quarter.