Stake Purchase • Financial Services

Cerberus Capital Management Invests In Ally

On April 3, 2006, asset manager Cerberus Capital Management invested in financial services company Ally from General Motors

Investment Context
  • This is Cerberus Capital Management’s 2nd transaction in the Financial Services sector.
  • This is Cerberus Capital Management’s 11th transaction in the United States.
  • This is Cerberus Capital Management’s 2nd transaction in Michigan.
Investment Fate
  • Ally went public in 2014.

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Investment Summary

Date April 3, 2006
Target Ally
Sector Financial Services
Investor(s) Cerberus Capital Management
Sellers(s) General Motors
Deal Type Stake Purchase

Target Company

Ally

Detroit, Michigan, United States
Ally is an automotive financial services company. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally was incorporated 1919 and is headquartered in Detroit, Michigan.
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Investor Overview 1

Investor

Cerberus Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1992
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Cerberus Capital Management is a private investment firm that targets a wide range of global investments. Cerberus primarily looks for undervalued or distressed situations. Industry sectors of interest include aerospace and defense, apparel, automotive and industrial, building products, commercial services, consumer and retail, financial services, healthcare, manufacturing and distribution, paper, packaging, and printing, real estate, technology, telecommunications, transportation, and travel. In addition to private equity investing, Cerberus also provides corporate credit and acquires real estate. Cerberus was formed in 1992 by Steve Feinberg and is based in New York City.


Deal Context for Investor #
Overall 14 of 93
Sector: Financial Services 2 of 9
Type: Stake Purchase 4 of 8
State: Michigan 2 of 5
Country: United States 11 of 68
Year: 2006 2 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-23 Albertsons

Boise, Idaho, United States

Albertsons is a food and drug retailer. Albertsons operates under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated. Albertsons was formed in 1939 and is based in Boise, Idaho.

Buy $17.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-07 Scottish Re

Hamilton, Bermuda

Scottish Re Group engages in the reinsurance of life insurance, annuities and annuity-type products.

Buy -

Seller Profile 1

SELLER

General Motors

Detroit, Michigan, United States

Category Company
Founded 1908
Sector Automotive
Employees163,000
Revenue 187.4B USD (2024)
DESCRIPTION
General Motors' corporate headquarters in Detroit, Michigan.
General Motors' corporate headquarters in Detroit, Michigan.

General Motors is a global manufacturer of cars, trucks, and auto parts. General Motors' automotive group is separated into GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA). GMNA develops vehicles manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. Outside of North America, vehicles are developed, manufactured and marketed under the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. GM also has equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia. These companies design, manufacture and market vehicles under the Alpheon, Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands. In addition to the products GM sells to dealers for consumer retail sales, GM also sells cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. General Motors was founded in 1908 and is based in Detroit, Michigan.


Deal Context for Seller #
Overall 3 of 6
Sector: Financial Services 1 of 1
Type: Stake Purchase 1 of 1
State: Michigan 1 of 2
Country: United States 2 of 5
Year: 2006 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-12 Electro-Motive Diesel

Lagrange, Illinois, United States

Electro-Motive Diesel designs, manufactures, and sells diesel-electric locomotives for the commercial railroad applications in the United States and internationally. The company provides railway transport and diesel engine solutions for intercity passenger, commuter, switching, freight, industrial, and mining applications. It also provides diesel power engines for marine propulsion, offshore and land based oil well drilling rigs, and stationary power generation, as well as OEM parts and services for rail, marine, and power generation applications.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-27 Allison

Indianapolis, Indiana, United States

Allison is a designer and manufacturer of automatic transmissions for the medium and heavy-duty commercial vehicle markets. Allison was incorporated in 1915 and is based in Indianapolis, Indiana.

Sell $5.6B