Capmark Investments Files for Bankruptcy

NEW YORK (Reuters) – Capmark Investments LP, which said it manages more than $1.7 billion of equity real estate and mortgage-related investments, filed for bankruptcy protection on Friday, less than three months after its parent, Capmark Financial Group, made its own filing.

The partnership once known as GMAC Institutional Advisors has more than $1 billion of assets and liabilities, according to its Chapter 11 petition filed with the U.S. bankruptcy court in Wilmington, Delaware.

Capmark Investments said it hired Lazard Freres & Co as its investment banker and financial adviser for the bankruptcy process. A spokesman for the partnership declined to comment.

Capmark Financial, a commercial real estate company, had sought protection from creditors on Oct. 25, wiping out the investments of several private equity firms including Kohlberg Kravis Roberts & Co.

The company cited deteriorated financial and real estate market conditions and a lack of available capital for its filing, in which it reported $20.1 billion of assets and $21 billion of liabilities.

Capmark Investments, Utah-based Capmark Bank and some of Capmark Financial’s non-U.S. units did not seek protection at the same time as the parent.

Both Capmark Financial and Capmark Investments are based in Horsham, Pennsylvania.

The case is In re: Capmark Investments LP, U.S. Bankruptcy Court, District of Delaware, No. 10-10124. The earlier case in the same court is In re: Capmark Financial Group Inc, No. 09-13684.

(Reporting by Jonathan Stempel; Additional reporting by Caroline Humer; Editing by Richard Chang)