Cerberus Capital Management has created an independent French consumer financing firm, My Money Bank, the firm said on Tuesday.
The new firm consists of the former French consumer finance operations of GE Money Bank, formerly part of GE Capital which was purchased by Cerberus, according to the statement. My Money Bank is focused on credit consolidation, auto finance, consumer credit, and deposits.
My Money Bank will continue its retail banking activates in mainland France and its territories in Africa and the Caribbean, the company said.
GE Money Bank’s management team will also transition into new posts at My Money Bank. Eric Shehadeh, the head of the French consumer finance entity since 2013, will assume the position of chief executive officer.
Alain Demarolle, former chairman of LCH Clearnet SA, has been appointed chairman of the board of directors.
The French consumer finance arm was part of GE Capital’s sell-off of its European businesses last year, as Private Debt Investor previously reported.
Last year, Madrid-based specialised credit firm Incus bought a €80 million GE Capital Portuguese mortgage loan portfolio along with €35 million worth of GE’s Spanish leasing assets, while AnaCap Financial Partners and Arrow Global Limited bought a €127 million Dutch loan portfolio from GE Artesia.
Cerberus made an initial bidding offer for GE Money Bank last June. While GE did not release the purchase price, the firm said that net investment for the first quarter of 2016 would be $4.6 billion including the sale.
Cerberus declined to comment.
The launch of My Money Bank comes as Cerberus just topped another fundraising goal this month with a $2.05 billion private credit fundraise, as PDI reported. The Cerberus Levered Loan Opportunities Fund III surpassed its $1.5 billion to $2 billion goal, marking the third in a row to exceed its target.