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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
01/01/2007
Citations
Stowell, David, and Jeremy Hartman. Cerberus and the U.S. Auto Industry. Case 5-107-009 (KEL315).
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