GMAC Commercial Finance Sells Equipment Finance Portfolio to Prudential Capital Group
GMAC Commercial Finance LLC (GMAC CF), a wholly-owned subsidiary of GMAC Financial Services, announced today that it completed the cash sale of $607 million of its equipment finance portfolio to Prudential Capital Group, an investment business of Prudential Financial, Inc., (NYSE: PRU). Colonnade Advisors LLC of Chicago, IL served as exclusive financial advisor to GMAC CF in the transaction.
GMAC CF determined after a strategic review in the second half of 2006 to focus on its core businesses. The sale of the equipment finance portfolio is a result of that strategic plan. GMAC CF remains committed to its core global Commercial Services and Structured Finance businesses and continues to focus on growth in North America and Europe.
“GMAC CF is pleased with this transaction, particularly because Prudential Capital Group is hiring many of the former employees of GMAC CF’s Equipment Finance Division,” said David Baker, senior managing director of GMAC CF. “We think this is a favorable outcome for the individuals as well as the organization.”
“Colonnade Advisors is pleased to have lent our industry expertise to this transaction. GMAC CF harvested the value of its Equipment Finance Division, which GMAC built from scratch. Prudential Financial is entering a new asset class that has long been of interest,” said Christopher L. Gillock, Managing Director of Colonnade.
About GMAC Commercial Finance: GMAC Commercial Finance (GMAC CF) is part of GMAC Financial Services, a global financial services company that operates in approximately 40 countries in the auto finance, real estate finance, commercial finance and insurance businesses. With a presence in over 30 cities around the globe and a loan portfolio in excess of $5 billion, GMAC CF has become one of the most trusted sources of capital for the middle-market businesses it serves. Through its three operating divisions, it provides a full breadth of leveraged finance products in and between North America and Europe, as well as global factoring and accounts receivable finance. Loan facilities are in the $5 million to $500 million (USD) range.