#United States #New York #Siguler Guff #Tactical Credit #Evergreen Fund

Siguler Guff's Breakthrough in Tactical Credit Investments

Recently, Siguler Guff & Company, LP, known as one of the prominent multi-strategy private markets investment firms, announced an extraordinary achievement in its Tactical Credit investment vertical, concluding 2024 with its highest ever deal activity. This milestone underscores the firm's strategic focus and investor confidence in its private credit offerings, aiming to capitalize on market dislocations while providing stable returns with low correlation to market fluctuations.

Record-Setting Deal Activity

In the last quarter of 2024, Siguler Guff closed several significant transactions, including:

• - Serving as the lead lender and administrative agent for a $54 million senior secured credit facility to facilitate a private equity firm's acquisition of an auto logistics provider catering to major automotive manufacturing companies.
• - Acting as the sole lender and administrative agent for a $50 million senior secured facility to a digital transformation enterprise backed by an independent sponsor and family office.
• - Providing a $30 million B-Note for a senior secured loan to support the third phase of a luxurious condominium project in South Florida.
• - Committing $50 million to a forward flow agreement for the acquisition of personal installment loans, reflecting a strong equity buffer from a long-established lender.
• - Completing a $35 million secondary purchase of limited partnership interests in four alternative credit funds.

A Strong Fundraising Year

This quarter's success follows a vigorous overall year for the Siguler Guff credit platform, which raised over $1.2 billion in new commitments during 2024 alone. Notably, the firm launched its inaugural evergreen credit fund, the Siguler Guff Tactical Credit Evergreen Fund (TCEF), which had its first close in May 2024 and continues to accept additional capital. This strategic move has allowed the firm to build and maintain a flexible yet targeted approach towards its investment strategies.

Strategic Insights from Leadership

Michael Apfel, Partner and Head of Credit and Special Situations at Siguler Guff, expressed satisfaction with the volume and variety of tactical credit investments reached during the fourth quarter of 2024. He highlighted the presence of varied opportunities in asset-backed finance, lending to smaller businesses, and real estate lending, which are anticipated to sustain momentum into 2025.

Furthermore, Drew Guff, Co-Managing Partner and Chief Investment Officer, emphasized the firm's enduring commitment to sourcing unique investment opportunities. He argued that the actual value in private markets arises not merely from larger, more competitive deals but from accessing smaller, hard-to-reach niches where demand for capital is high, and risk-adjusted returns are significantly attractive.

Proven Track Record

Since its establishment, Siguler Guff's credit platform has successfully deployed $9 billion across various market conditions and economic cycles. It emphasizes a diversified range of credit strategies encompassing direct corporate lending, specialty finance, and investments in special situations. The firm's long-standing history and experience of nearly 30 years have shaped its strategy and led to its recognition as a leading player in the private investments landscape.

About Siguler Guff

Founded in 1991 and headquartered in New York, Siguler Guff manages approximately $18 billion in assets. With additional offices strategically located across major global financial hubs, including Boston, Hong Kong, and London, the firm is well-positioned to respond swiftly and efficiently to emerging market opportunities. Siguler Guff is committed to delivering robust risk-adjusted returns for its investors by focusing on niche markets and smaller, often overlooked companies.

In conclusion, Siguler Guff's record-setting quarter in Q4 2024 signifies not just a milestone for the firm itself but also a promising indication of the evolving landscape in private credit investments, combining strategic foresight with robust financial backing.