Cerberus to acquire home equity lender Spring EQ

• The transaction is expected to close in the fourth quarter of 2023
• Spring EQ was founded in 2016
• Founded in 1992, Cerberus has approximately $60 billion in assets under management

Cerberus Capital Management has agreed to acquire Pennsylvania-based Spring EQ, a provider of home equity financing solutions. No financial terms were disclosed.

Spring EQ founder and CEO Jerry Schiano, alongside the current management team, will continue to lead Spring EQ following the completion of the transaction.

On the deal, Joe Steffa, managing director of Cerberus Residential Opportunities, said in a statement“There is accelerating demand for home equity solutions and Spring EQ is already a leader in the growing market. Amid higher interest rates and record levels of untapped residential home equity in the United States, Spring EQ is providing American homeowners a simpler, more transparent alternative to unlocking their value. We’re excited to partner with Jerry and the team to deliver unparalleled experiences to customers on an expanded scale.”

Dechert LLP and Dentons US LLP acted as legal advisors to Cerberus and Morgan Stanley served as financial advisor. Katten Muchin Rosenman LLP acted as legal advisor to Spring EQ and GreensLedge Capital Markets LLC served as financial advisor.

The transaction is expected to close in the fourth quarter of 2023.

Spring EQ was founded in 2016.

Founded in 1992, Cerberus has approximately $60 billion in assets under management.