GE Ventures is reportedly being considered for a spinoff as part of an ongoing, wide-ranging reorganisation of General Electric.
US-based industrial and power technology producer General Electric (GE) intends to divest its corporate venturing unit, GE Ventures, MedCity News reported yesterday, citing two sources who disclosed the news independently.
GE Ventures was launched in 2013 as a successor to the firm’s GE Capital unit (which still operates as a financial services provider) as well as a clutch of separate funds that focused on areas such as healthcare and energy, with a brief to invest $150m a year on behalf of its parent.
Since its formation, GE Ventures has been led by CEO Sue Siegel, now also General Electric’s chief innovation officer, and has built up a substantial portfolio that includes dynamic glass producer View and 3D printing technology providers Carbon and Desktop Metal.
The overall value of the unit’s portfolio is what is preventing it from being shut down rather than spun off according to one source, who suggested it could be transferred to venture capital firm Mohr Davidow Ventures.
GE is in the process of a long-term reorganisation that involves it selling off many of its subsidiaries including GE Transportation, a majority share of its healthcare business and the 62% stake it holds in oil services firm Baker Hughes. The firm’s share price has fallen by more than two-thirds in the past two years.
Altogether, 27 of GE Ventures’ 86-strong portfolio consists of companies operating in the healthcare sector, and the prospective sale of GE’s healthcare activities could be related to any decision on GE Ventures’ future.
GE Ventures spokeswoman Kristin Schwartz told MedCity News: “During this time of transformation for GE, we are evaluating strategic options for GE Ventures to continue delivering returns for our shareholders and partners.
“While we cannot comment specifically on that process, we remain committed to supporting our portfolio companies, business units and partnering with the entrepreneurial ecosystem.”
The news comes in the wake of a series of high-profile departures from GE Ventures in the past year, including managing director Lisa Suennen, managing director of healthcare investments Noah Lewis and director of healthcare investments Jessica Zeaske.
