Pegasus Capital Advisors has teamed with Deerfield Capital Corp. to form an investment venture that will purchase distressed corporate bank loans and other senior secured corporate loans. Pegasus has committed $75 million, while Deerfield has committed $15 million.
Deerfield Capital Corp. (NYSE AMEX: DFR) (“DFR”) announced today that it has entered into a new investment venture with Pegasus Capital Advisors L.P. (“Pegasus”). Under the management of Deerfield Capital Management LLC (“DCM”), DFR’s investment management subsidiary, Pegasus and DFR have committed to invest $75 million and $15 million, respectively, primarily in corporate bank loans and other senior secured corporate loans that DCM and Pegasus believe are priced at attractive levels.
Commenting on the new venture, Jonathan Trutter, DFR’s chief executive officer, said, “Our partnership with Pegasus is indicative of our belief that the current market environment provides an unprecedented opportunity to purchase high quality loan assets at extremely low prices. We believe that DCM’s long track record and experience in investing in the bank loan market combined with Pegasus’ diverse operating advisor industry knowledge and substantial credit underwriting experience will produce attractive risk-adjusted returns.”
Commenting on the relationship with DFR, Craig Cogut, Pegasus’ Founder and Co-Managing Partner, stated, “We view the well-regarded DCM fixed income platform as a dynamic way to cautiously access the unusually attractive investment opportunities created by the dislocation of global financial markets.” Rodney Cohen, Pegasus Co-Managing Partner, indicated, “The diverse industry experience of the Pegasus staff and partners combined with the bank loan experience of DCM is extremely powerful. We look forward to working with DCM to create exceptional value for our investment.”
DCM, an alternative asset manager noted for its expertise in bank loan investing, has over $10.4 billion in assets under management including over $4.2 billion in loan assets under management (as of March 1, 2009).
Pegasus is a U.S.-based private equity fund manager that provides capital to middle market companies across a wide variety of industries. Pegasus currently manages over $1.8 billion in assets through several private equity funds and has made more than 70 investments since its inception.
About the Company
DFR, through its subsidiary, DCM, manages client assets, including bank loans and other corporate debt, residential mortgage backed securities, government securities and asset-backed securities. In addition, DFR has a principal investing portfolio comprised of fixed income investments, including bank loans and other corporate debt and residential mortgage backed securities.