March 24, 2006
GMAC Commercial Holding Corp. acquired by investor group.
The firm’s Executive Compensation and Employee Benefits Department advised the Senior Executive Team of GMAC Commercial Holding Corp. (GMAC-CH) in the approximately $9 billion acquisition of GMAC-CH by an investor group led by affiliates of Kohlberg Kravis Roberts & Co., Five Mile Capital Partners, LLC, and Goldman Sachs Capital Partners from General Motors Acceptance Corporation (GMAC). GMAC, which is a wholly-owned financial services subsidiary of General Motors Corporation, sold 78 percent of its equity in GMAC-CH for more than $1.5 billion in cash. At the March 23 closing, GMAC-CH also repaid to GMAC approximately $7.3 billion of inter-company loans, bringing GMAC's total cash proceeds from the transaction to nearly $9 billion. Willkie advised GMAC-CH’s Chairman, Vice Chairman, CEO and management team on their employment and executive compensation matters. GMAC-CH, which will now be known as Capmark Financial Group Inc., is a leader in real estate finance, investments and services. The deal was handled by partner Stephen Lindo and associate David Rubinsky.