Retaining a significant interest in providing financial services to the global commercial real estate industry In March 2006, GMAC sold 78 percent of its equity stake in GMAC Commercial Holdings (GMACCH) to an investor group led by affiliates of Kohlberg Kravis Roberts & Co. (KKR), Five Mile Capital Partners, LLC, and Goldman Sachs Capital Partners. The transaction provided more than $1.5 billion in cash, and at closing GMACCH — which changed its name to Capmark Financial Group Inc. (Capmark) at closing — also repaid to GMAC approximately $7.3 billion of intercompany loans, bringing GMAC’s total cash proceeds from the transaction to nearly $9 billion.
The sale provided liquidity relief to GMAC and ensures that adequate capital will be available to grow Capmark. GMAC retains a significant equity interest of 21 percent in Capmark, providing a continuous stream of earnings.
In 2005, GMACCH delivered solid results with earnings of $290 million, an increase of 42 percent over 2004. It originated $29.9 billion in loans in 2005, an increase of 32 percent over 2004.
Capmark enjoys a well-established reputation for expertise and outstanding client service with a servicing portfolio that stood at approximately $276 billion at year-end.
