Siguler Guff & Co. and Cerberus Capital Management LP, two private-equity firms whose specialties include distressed debt, are teaming up to buy nonperforming loans, according to two people briefed on the investment vehicle and Delaware state records.
Cerberus will manage a partnership that will use capital provided by Siguler Guff to invest in the soured loans, according to the people, who requested anonymity because the firms haven’t discussed the fund publicly. The fund, formed under the name Cerberus/Siguler Guff NPL Fund LP, will probably focus on European loans, according to one of the people.
Siguler has about $10 billion in assets under management, primarily in direct investment vehicles, separate accounts and funds of funds that allocate client capital to money managers such as Cerberus. The firm’s Distressed Opportunities Fund II LP, a $988 million fund that started in April 2005, invested some of its capital with Cerberus, LBO Wire reported the following year.
James Gereghty, the head of New York-based Siguler’s distressed opportunities funds, declined to immediately comment.
George Siguler, Drew Guff and Donald Spencer initially created the private-equity group of New York-based Paine Webber in 1991 and began running the unit as an independent firm in 1995. Cerberus, founded in 1992 by Stephen Feinberg and William Richter, invests in private-equity deals, distressed assets and real estate, and also originates loans.