GE Equity is closed to new investments with immediate effect. It’s mainly TMT portfolio is worth some €3 billion globally and about 60 per cent of this is invested in North America, 20 per cent in Europe and 20 per cent in Asia and South America.
Investments will continue only in support of existing portfolio companies but otherwise activities will concentrate on exiting the portfolio with the aim of maximising value. This will happen over a period of time and as such a number of the investment professionals will be employed to carry out this task.
The remainder of the team will either be redeployed within GE Capital or made redundant. Decisions of either nature have yet to be finalised. Sherwood Dodge will remain as head of the European operation of GE Capital.
The decision to move out of private equity is a strategic one for GE and affects the global GE Equity operation. GE Equity suffered considerable staff losses during the dot.com boom as a result of its refusal to structure a carry arrangement for its investment professionals. Having gained their private equity stripes many team members moved for more lucrative terms elsewhere.