Ares, Apollo continue to vie for piece of GE Capital

The two alternative investment firms, who had also bid on GE Antares, have submitted proposals for the GE Capital Healthcare Financial Services unit.

Ares Management, Apollo Global Management, Capital One Financial and healthcare real estate firm Ventas have all made bids for GE Capital’s healthcare finance unit, according to Bloomberg and other publications. The healthcare lending division is in the process of being sold from the General Electric parent along with most of GE Capital.

Spokespeople from all the firms declined to comment. 

Ares and Apollo, the two US alternative investment firms, had also submitted bids for the GE Antares unit, which works exclusively on mid-market sponsor-backed transactions, earlier this month. That division, which also saw proposals from KKR, Guggenheim Securities and Japanese bank Sumitomo Mitsui, wound up striking a deal with the Canada Pension Plan Investment Board on 9 June to be sold for $12 billion 

The healthcare unit could be sold for around $11 billion, according to sources who talked to Bloomberg.

The first round of bids was due on 18 June. The next round will be due early next month. GE is working with JPMorgan on the sale and expects to select a buyer by the end of July, according to Bloomberg sources.

GE, which is headquartered in Fairfield, Connecticut, is selling several lending businesses with about $200 billion in assets, as it dismantles the GE Capital financial-services business to focus on manufacturing.

The company plans to sell its healthcare and international buyout lending arms soon. GE management has previously said it could announce $20 billion to $30 billion more in additional asset sales by the end of June.

The healthcare unit and other GE Capital divisions have continued to make loans amidst the sales process. The healthcare business announced that it arranged a $175 million senior secured credit facility for Physiotherapy Corporation, a rehabilitation services provider, earlier this month.