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Research Details

Cerberus and the U.S. Auto Industry

Abstract

This case explores how and why GM became a major user of private equity and hedge fund capital, as well as the risks and rewards of these new relationships. The Cerberus transaction, audacious in both its size and complexity, is explored in detail. What were the alternatives for GM, and what risks and opportunities lay ahead for both parties? This case further investigates the benefits, disadvantages, and potential conflicts of interest that evolved as GM's many suppliers increasingly embraced low-cost, nontraditional financing from hedge funds.

 

Type

Case

Author(s)

David Stowell, Jeremy Hartman

Date Published

06/11/2018

Citations

Stowell, David, and Jeremy Hartman. Cerberus and the U.S. Auto Industry. Case 5-107-009 (KEL315).

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