Hedge funds and procurement manager will sell former Chrysler unit of auto-loans to Toronto-Dominion Bank for 6.3 billion U.S

I bet Cerberus Capital Management LP, Chrysler survive the bankruptcy and financial crisis of 2008 to recover 90 percent of the original investment, said two people briefed on the matter.

Hedge funds and procurement manager, said yesterday it will sell former Chrysler unit of auto-loans to Toronto-Dominion Bank for 6.3 billion U.S. dollars in cash. The agreement will return 75 percent of the money invested by the New York-based company and its investors, said the people, who declined to be identified because the information is private. Cerberus will keep $ 900 million in assets, representing about 15 percent.

Cerberus and its founder, Stephen Feinberg, seized the attention to the height of the leveraged buyout boom in 2007 with the acquisition for $ 7.4 billion for 80 percent of the automaker's third-largest US-based Daimler of Germany AG. The most serious economic recession since the Great Depression sent to both Chrysler and General Motors Corp., the largest U.S. automaker to bankruptcy.

"They grabbed this operation from the jaws of defeat," said Paul Schaye, managing partner of Chestnut Hill Partners, a New York firm that helps private equity firms identify targets. "They are recovering their investment, not the car company but the financial engineering around the car."

The purchase of Chrysler is still the largest to be led by Cerberus, and the acquisition of an American icon for 82 years, raised the profile of the company and the private equity industry. Feinberg, 50, a former banker at Drexel Burnham Lambert Inc., founded Cerberus in 1992, naming it after the mythical three-headed dog that guards the gates of hell.

GMAC

Cerberus lose their share of the automaker Chrysler in the midst of bankruptcy and takeover by the U.S. government, while keeping the lender, known as Chrysler Financial Corp. The automaker, now known as the Chrysler Group LLC, is now controlled by the directors of Italy's Fiat SpA.

In his other great challenge of the U.S. auto industry, Cerberus in 2006 bought a 51 percent stake in General Motors lender antique car, GMAC, now known as financial ally. A government bailout Cerberus Ally reduced participation of about 15 percent to 31 December, according to a regulatory filing.

Chrysler Financial, based in Farmington Hills, Michigan, has approximately 1,850 employees and has about $ 7.5 billion in loans at the close of the transaction, according to a Toronto-Dominion investor presentation released yesterday. About 90 percent of loans are in the U.S., and 10 percent in Canada.