Cerberus’ Chrysler Loss Slashed In TD Deal

Dec 22 2010 | 12:43pm ET

Not long ago, Cerberus Capital Management’s purchase of Chrysler looked like a disaster. Now, it looks more like a bad idea.

The New York-based alternative investments firm will be left with just a 10% loss on its investment in the auto maker following Toronto-Dominion Bank’s acquisition of Chrysler’s former lending unit, Bloomberg News reports. Cerberus took a majority stake in Chrysler in 2007 for $7.4 billion. Just a year later, it was forced to give up control to win government bailout funds for the failing company.

But Cerberus held onto Chrysler Financial, until now. TD will pay about $6.3 billion for the unit; Cerberus will retain about $900 million in assets.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...