MINNEAPOLIS, June 12 /PRNewswire/ -- GMAC-Residential Funding Corporation
(GMAC-RFC) today introduced the GMAC Venture Capital Fund, which will invest
in businesses with mortgage technologies or products that are designed to
improve the company's core mortgage-related businesses. The initial
investments will be made in HomeAdvisor Technologies Inc. and Basis100,
companies that could revolutionize the way homes are bought and sold,
shortening the mortgage-closing process, and reducing consumer costs.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000324/MNF002 )
The new fund is part of GMAC-RFC's ongoing effort to leverage its core
mortgage, securitization and asset management capabilities. "What we bring to
the table is an ability to collaborate with the businesses we fund," said
Nathan Kornfeld, managing director, merchant banking for GMAC-RFC. "There are
many venture capital funds out there, but only GMAC-RFC brings mortgage
industry expertise and GMAC sponsorship." Kornfeld said he expects the
investment in HomeAdvisor Technologies to result in streamlined processes and
lower costs for consumers.
While the private-equity market has become crowded in the last few
years -- particularly with respect to Internet startups -- the GMAC Venture
Capital Fund targets select companies. "We're one of the few investors with
the experience to make portfolio acquisitions of collateral assets from
portfolio companies," Kornfeld said. "Our investment decision process will be
integrated with our mortgage securitization business, providing a direct
benefit to our knowledge base." GMAC-RFC does not anticipate that an initial
public offering will be the natural conclusion to these investments.
GMAC-RFC plans to take a minority stake in its target companies, which are
likely to have strong management teams in place. As part of a full-service
approach, financing and access to GMAC-RFC products will be available to
target companies, depending on overall need and creditworthiness. The fund's
investments will typically range from $5 million to $15 million, but could
provide a larger infusion of capital if combined with the resources of other
investment partners.
GMAC-RFC, a subsidiary of General Motors Acceptance Corporation, is
America's largest non-agency issuer of mortgage-backed securities and
number-two warehouse lender. The company leverages its strengths in
securitization, lending and investment to offer a broad portfolio of
innovative capital solutions. The company is headquartered in Minneapolis and
operates in the United States, Europe, Latin America and Japan.
http://www.rfc.com
SOURCE GMAC-Residential Funding Corporation
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Related links:
http://www.rfc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000324/MNF002
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/138832.html or fax,
800-758-5804, ext. 138832
CONTACT:
Jodi Ehlers Swanson of GMAC-RFC,
952-832-7343, jehlers@rfc.com , or Randy Sands of Shandwick
International, 952-346-6191, rsands@shandwick.com , for GMAC-RFC
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