Stake Purchase • Financial Services

KKR and Goldman Sachs Merchant Banking Invest In Capmark Financial Group

On March 23, 2006, private equity firms KKR and Goldman Sachs Merchant Banking invested in financial services company Capmark Financial Group from Ally

Investment Context
  • This is KKR’s 1st and Goldman Sachs Merchant Banking’s 1st transaction in the Financial Services sector.
  • This is KKR’s 25th and Goldman Sachs Merchant Banking’s 18th transaction in the United States.
  • This is KKR’s 2nd and Goldman Sachs Merchant Banking’s 4th transaction in Pennsylvania.
Investment Fate
  • Capmark Financial Group went bankrupt in 2009.

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Investment Summary

Date March 23, 2006
Target Capmark Financial Group
Sector Financial Services
Investor(s) KKR
Goldman Sachs Merchant Banking
Sellers(s) Ally
Deal Type Stake Purchase

Target Company

Capmark Financial Group

Horsham, Pennsylvania, United States
Capmark Financial Group, Inc. is a commercial real estate finance company with investments and funds management and asset management businesses.
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Investors Overview 2

Investor

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


Deal Context for Investor #
Overall 42 of 503
Sector: Financial Services 1 of 22
Type: Stake Purchase 4 of 66
State: Pennsylvania 2 of 6
Country: United States 25 of 213
Year: 2006 4 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-02 NRG

Houston, Texas, United States

NRG is a wholesale power generation company. NRG engages in the ownership, development, construction, and operation of power generation facilities; the transacting in and trading of fuel and transportation services; and the trading of energy, capacity and related products in the US and select international markets. NRG was formed in 1989 and is based in Houston, Texas.

Sell USD4.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-01 Legrand

Limoges, France

Legrand manufactures products and systems for low-voltage electrical installations and data networks used in residential, commercial, and industrial buildings. The company operates primarily in France, Italy, the Rest of Europe, the United States, and Canada. Legrand was founded in 1865 and is based in Limoges, France.

Sell -
Investor

Goldman Sachs Merchant Banking

New York, New York, United States

Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


Deal Context for Investor #
Overall 28 of 189
Sector: Financial Services 1 of 8
Type: Stake Purchase 2 of 13
State: Pennsylvania 4 of 8
Country: United States 18 of 130
Year: 2006 2 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-06 Education Management

Pittsburgh, Pennsylvania, United States

Education Management Corp. is a provider of private post-secondary education. EDMC has provided career-oriented education for over 40 years has generated consistent revenue and profit growth for many years and is among the largest providers of private post-secondary education in North America based on student enrollment and revenue.

Buy $3.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-01 Legrand

Limoges, France

Legrand manufactures products and systems for low-voltage electrical installations and data networks used in residential, commercial, and industrial buildings. The company operates primarily in France, Italy, the Rest of Europe, the United States, and Canada. Legrand was founded in 1865 and is based in Limoges, France.

Sell -

Seller Profile 1

SELLER

Ally

Detroit, Michigan, United States

Category Company
Founded 1919
Sector Financial Services
Employees10,700
Revenue 8.9B USD (2024)
DESCRIPTION

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.


Deal Context for Seller #
Overall 1 of 4
Sector: Financial Services 1 of 2
Type: Stake Purchase 1 of 1
State: Pennsylvania 1 of 1
Country: United States 1 of 2
Year: 2006 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-03-01 Masterlease Polska S.A.

Gdańsk, Poland

Masterlease Polska S.A. is a company involved in providing fleet management, leasing, and financing services to individuals, companies and institutions by leasing new and used vehicles.

Sell -