Detroit GMAC Commercial Holding Corp. (GMACCH), which was recently acquired by an investor group, has changed its name to Capmark Financial Group, Inc. The name change is being made effective in the second quarter of this year.
GMACCH/Capmark focuses on real estate finance, investments and services, including affordable housing. General Motors Acceptance Corp., the financial services subsidiary of General Motors Corp. (GM), sold 78% of its equity in GMACCH to a group of investors led by affiliates of Kohlberg Kravis Roberts & Co.; Five Mile Capital Partners, LLC; and Goldman Sachs Capital Partners. The transaction totaled almost $9 billion in a combination of cash and repayment of inter-company loans.
The sale helped GM add to its cash hoard at a time of unprecedented problems at the automaker that have made some observers fear it was in danger of bankruptcy. GM’s problems were also dragging down the credit rating of GMACCH, something that won’t happen with the new Capmark, which also announced that it had secured a $10.8 billion loan facility from a syndicate of banks.
“With increased access to capital, a new name and investment-grade ratings, the company can build on its many strengths,” said Dennis Dammerman, the former vice chairman of General Electric and chairman and CEO of GE Capital Corp. who was appointed independent chairman of Capmark.
Letter to the editor
What an excellent editorial [in the April issue]! You have eloquently nailed the problem to the wall for all to see. Sadly, poor Alphonso could not care less.
The answer to your question, “what is the future of HUD,” boggles the imagination. The assets and powers of HUD represent the greatest mix of stuff under any federal department or bureaucracy. Untying it will be our generation’s Gordian Knot. Sadly, and like that knot, people have forgotten its purpose and now speculate on the fascinating puzzle.
Our government is not Alexander. Sadly, we note that it has not even begun to unravel what was tied together over 50 years.
Raising the question to the greater public will hopefully bring focus to the social and economic consequences of failing to untie the knot.