The public equity company, Apollo Global Management LLC is reportedly buying energy sector investments from GE Capital for approximately USD 1 billion. Reliable sources claim that GE has not yet disclosed the actual amount that Apollo was going to pay for acquiring the energy assets portfolio.
According to Bloomberg, the portfolio comprises nearly 20 investments in renewable energy and U.S. power assets held by the financial services arm of GE that includes natural gas-fired energy generation and midstream energy infrastructure. The terms of the agreement and breakdown of the expected obligations have not been disclosed yet. The official transaction is likely to be completed in the last quarter of this financial year, claim reports.
Prior to this major announcement, GE had apparently given the pink slip to CEO John Flannery last week and hired a board member of GE, Larry Culp in his place, who incidentally, had been the  CEO of Danaher Corp for a long time. This deal is one of the latest initiatives taken by GE Capital to sell off its subsidiary business investments in recent years.
The deal highlights GE’s efforts to decrease its focus on the development of industrial equipment and concentrate on its once successful finance business. Since the financial crisis, GE Capital has been experiencing a downfall, on the grounds of which ex-CEO Jeffrey Immelt undertook a decision to  support only a few manufacturing operations including financing of gas turbines and jet leasing, cite trusted sources.
Post declaration of this deal, the President of GE Capital, Alec Burger said that the sale of that equity portfolio reflects the ongoing progress of the strategy adopted by GE Capital and enables them to continue to deliver on their commitments and provide value to GE. He also added Apollo Funds are a suitable buyer for these assets given their admirable investment approach and substantial experience in complex alternative investment management.
Saifali Bepari:
Saif currently works as a content writer for CMFE Research, AlgosOnline and a couple of other platforms. A Computer Science graduate who has a zest for writing over coding, commenced his journey in the writing industry as a freelancer. Having had a prior freelance experience, he has tinkered with creative writing, technical writing, blog writing, editing, and copywriting. An ambivert by nature, his hobbies include reading, gymming, and taking long walks. UPDATE: Saif Bepari no longer writes for CMFE Research. Should you have any query related to the content or wish to get in touch with us, please reach out to ‘Akshay Kedari’. or Email - akshay.k@cmferesearch.com
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