Finance & Services · 1932 origins · major exit announced 2015

GE Capital

Financing the appliances, and much more.

Most financial businesses divested; legacy insurance obligations retained.

Vintage-style artistic recreation of GE's historic businesses.

Back to GE Businesses

Business history

GE Capital began in 1932 as the General Electric Contracts Corporation, helping customers finance appliance purchases.

It grew into a vast financial services business.

GE announced the sale of most GE Capital assets in 2015. Its financial portfolio exited through multiple transactions, not a single sale of every business; some legacy insurance obligations remained.

Historical references

Business history reference

Subsidiaries, acquisitions & joint ventures

Acquired · 1984 – 2006
Employers Reinsurance Corporation
Large US reinsurer bought by GE in 1984.
Ownership outcome: Sold to Swiss Re in 2006.
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Acquired · 1986 – 1994
Kidder, Peabody & Co.
Wall Street investment bank, majority bought in 1986.
Ownership outcome: Sold to PaineWebber in 1994 after a trading scandal.
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Acquired · 1988 – 2000
Montgomery Ward
GE Capital backed a management buyout of the retailer in 1988 and later owned all of it.
Ownership outcome: The retailer shut down after bankruptcy in 2000–2001.
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Founded · 1997 – 2004 (controlling ownership)
Genpact
Started in India in 1997 as GE Capital International Services, a business-process center.
Ownership outcome: GE sold a 60% stake on December 30, 2004, retaining 40% at that transaction. Genpact later became independently listed on the NYSE.
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Acquired · Acquired 2001
Heller Financial
Commercial lender bought by GE Capital in 2001.
Ownership outcome: Merged into GE Capital, then sold off when GE Capital shrank after 2015.
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Spun off · 2004
Genworth Financial
GE's life insurance and mortgage insurance businesses, listed on the stock market in 2004.
Ownership outcome: GE fully exited by 2006. Independent company.
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Spun off · Exit announced April 10, 2015
GE Capital Real Estate
GE announced on April 10, 2015 that $22.5 billion of real-estate debt and equity assets would be sold to Blackstone and Wells Fargo, with further sales to other buyers.
Ownership outcome: A portfolio exit with multiple closings—$9.5 billion had closed by June 17, 2015—not one sale on a single date.
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Spun off · Sold August 21, 2015
Antares Capital
GE Capital's middle-market sponsor-finance lending unit, sold to Canada Pension Plan Investment Board alongside Antares management.
Ownership outcome: Completed August 21, 2015; GE described its sale package as more than $11 billion, while CPPIB's ~$12 billion figure included certain related third-party loans.
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