CIFC announced it has entered into a five-year strategic relationship with GE Capital’s Bank Loan business, through which a commercial council of GE Capital and CIFC leaders will meet regularly to explore business opportunities between the two firms and to facilitate third-party investment advisory referrals. Peter Gleysteen, chief executive officer of CIFC, and Neeraj Mehta, a GE officer, are slated to serve as co-chairs of the commercial council.
In addition, GE Capital Debt Advisors, a wholly owned indirect subsidiary of GE Capital, is exiting its third-party investment advisory business, and assigned its role as manager of four “Navigator” collateralized loan obligation funds representing approximately $700 million in AUM to CIFC Asset Management, a wholly owned subsidiary of CIFC.
GE Capital received one million shares of CIFC common stock, warrants to purchase two million shares of a newly created class of CIFC non-voting, convertible preferred stock and $4.88 million in cash less certain accrued amounts from CIFC.
Through the agreement, GE Capital has the right to appoint a director to CIFC’s Board of Directors.
CIFC’s Gleysteen said: “We are excited to have finalized this strategic alliance and to officially start pursuing new opportunities the combination presents to us, including new investments for investors. Partnering with GE Capital uniquely positions CIFC at the intersection of GE Capital’s business as a leading corporate lender and our loan asset management platform.”
GE Capital’s Mehta stated: “We are excited to now be a meaningful shareholder in CIFC and look forward to working together.”
Berkshire Capital Securities advised CIFC in the transaction.