Disintermediation: CPPIB to Buy Antares Capital from GE

Mark Wiseman

Mark Wiseman, CEO and President, CPPIB

Canada Pension Plan Investment Board (CPPIB) made it official today, through CPPIB Credit Investments Inc., of a signed agreement with GE Capital to acquire 100% of GE’s U.S. sponsor lending portfolio, Chicago-based Antares Capital, alongside Antares management for a total consideration of US$ 12 billion. Antares Capital is the largest lender to middle-market private equity sponsors in the United States. Over the past five years, Antares has provided more than US$ 120 billion in financing. Essentially, CPPIB is becoming a direct lender for all sorts of deals, but in this case, getting massive exposure to the U.S. private equity middle-market sponsor space. This turn-key deal gives Antares Capital a source of permanent capital.

Twitter Screenshot Capture, June 9, 2015, Click to Enlarge

Twitter Screenshot Capture, June 9, 2015, Click to Enlarge

The deal is expected to close during the 3rd quarter of 2015 and plans are to have Antares Capital operating as a standalone business, governed by its own board of directors. The deal expands CPPIB’s existing Principal Credit Investments portfolio. CPPIB Credit Investments will be working with Antares’ seasoned team as well. Antares’ Founding Managing Partners David Brackett and John Martin are to stay on board.

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