Siguler Guff sees record quarter of deal activity in tactical credit strategy
Siguler Guff & Company has reported a record quarter of deal activity across its ‘tactical credit’ investment strategy at the end of last year.
The strategy focuses on private credit across specialty finance and corporate lending, with the flexibility to capitalise on market dislocations within traded credit.
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“We were pleased by the record pace and range of tactical credit investments during the fourth quarter,” said Michael Apfel, partner and head of credit and special situations at Siguler Guff. “We are currently finding exceptional opportunities in asset-backed finance, lending to businesses with less than $50m (£40.4m) of EBITDA, and real estate lending, which we expect to continue in 2025. With our flexible mandate, we are fortunate in that we can take advantage of all market conditions.”
Siguler Guff cited deals closed in the fourth quarter in its tactical credit strategy, including its role as lead lender and administrative agent for a $54m senior secured credit facility to support a private equity firm’s acquisition of a provider of asset-efficient auto logistics solutions for blue-chip auto manufacturers. It was also sole lender and administrative agent for a $50m senior secured credit facility to a digital transformation firm owned by an independent sponsor and family office.
However it did not disclose the overall deal volume.
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Additionally, the $18bn private markets asset manager reported a strong fundraising year across its broader credit platform, which raised over $1.2bn in new commitments over the last 12 months.
During 2024, the firm also launched its first evergreen fund, Siguler Guff Tactical Credit Evergreen Fund, which had its first closing in May 2024 and has accepted additional capital since then.
Drew Guff, co-managing partner and chief investment officer of Siguler Guff, added: “We believe the real value for investors in private markets is not in increasingly larger and more competitive deals, but rather in more difficult-to-access niches, smaller companies, and complex situations where demand for capital is at a premium and risk-adjusted return profiles are superior.”
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