CIT Announces Sale of Direct Private Equity Investments

PRNewswire
January 22, 2004

CIT Group Inc. (NYSE: CIT) today announced it signed a purchase and sale agreement in connection with the sale of the company's direct private equity portfolio to Protostar Equity Partners, L.P. The funding for Protostar was provided by the Goldman Sachs' GS Vintage Funds II, a series of investment partnerships managed by Goldman Sachs Asset Management's Private Equity Group. Net proceeds are expected to approximate CIT's December 31, 2003 carrying value.

As a condition to closing, CIT must obtain consents and/or waivers of certain rights, including rights of first refusal (held by other stockholders), on approximately 75% of the investment in the portfolio based on value. Consents and/or waivers must be obtained by June 30, 2004. These investments will close ("initial closing"), promptly after the satisfaction of this condition. The closing for the balance of the investments, where the necessary consents and/or waivers are received after the initial closing, will occur no later than December 31, 2004.

About CIT:

CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has nearly $50 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries. CIT holds leading positions in vendor financing, U.S. factoring, equipment and transportation financing, Small Business Administration loans, and asset-based and credit-secured lending. CIT, with its principal offices in New York City and Livingston, New Jersey has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit www.cit.com.

About Goldman Sachs:

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. The Goldman Sachs Private Equity Group, based in New York and London, manages over $11 billion of capital devoted to primary partnership investments, secondary purchases of limited partnership interests, direct co-investments and supporting investment teams in the acquisition of direct private equity investment portfolios.

About Protostar:

Protostar is a New York based middle-market leveraged buyout firm dedicated to acquiring portfolios of direct private equity investments. Protostar targets transactions ranging from $50 million to $250 million in equity value. The firm offers a balanced mix of strategic insight, operational capabilities and financial expertise, and is exclusively focused on building middle-market leaders.

SOURCE CIT Group Inc.