TY  - JOUR
AB  - 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 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.To analyze the significant role that private equity and hedge funds play in providing capital to corporations, especially those in distressed industries.
VL  - 
IS  - 
SN  - 2474-6568
DO  - 10.1108/case.kellogg.2016.000060
UR  - https://doi.org/10.1108/case.kellogg.2016.000060
AU  - Stowell David P.
AU  - Hartman Jeremy
PY  - 2017
Y1  - 2017/01/01
TI  - Cerberus and the U.S. Auto Industry
T2  - Kellogg School of Management Cases
PB  - Kellogg School of Management
SP  - 1
EP  - 16
Y2  - 2024/04/25
ER  -