Siguler Guff has raised more than $450 million for its second small business credit opportunity fund. Fund II’s limited partners include public and corporate pension plans, insurance companies, foundations and family offices. The fund will focus on lower middle market U.S. companies, typically with $2 to $15 million of annual EBITDA and less than $100 million of annual revenues.
NEW YORK, June 24, 2021 /PRNewswire/ — Siguler Guff, a leading global, multi-strategy private equity investment firm with over $15 billion of assets under management, announced today that it has recently raised more than $450 million for its Small Business Credit Opportunity Fund II (“Fund II” or the “Fund”) and related accounts. Since the launch of the strategy in 2015, the Firm has invested over $400 million, generating strong performance.
With robust deal flow across the U.S. from a broad range of industries, Siguler Guff has been investing in small businesses for more than 15 years. Since that time, and across multiple distinct economic cycles, the Firm has proven itself as one of the largest and most successful small business investors. The credit platform complements Siguler Guff’s existing small buyout equity investment strategies and provides the Firm with a unique ability to invest up and down the balance sheet of high quality small businesses.
Siguler Guff’s small business buyout experience will drive significant sourcing and underwriting advantages for the Fund, leveraging the Firm’s presence as an investor in over 100 small buyout funds, with experience in hundreds of portfolio companies and a broad network of sponsor relationships.
Through direct investments only, Fund II will provide capital to a diverse set of small and lower middle market U.S. companies, typically with $2-15 million of annual EBITDA, less than $100 million of annual revenues and consistently strong profit margins. The Fund includes a dedicated vehicle focused on providing capital to businesses located in otherwise underserved communities, creating jobs in communities with low-to-moderate income levels.
Sean Greene, a Managing Director at Siguler Guff and head of the Firm’s small business lending platform, said, “We are very excited about the many opportunities ahead for Fund II. Over the years, we have developed a proven formula for small business investing: identifying time-tested, resilient companies that are leaders in an attractive market niche; in conservatively structured transactions; alongside high quality sponsors. We are proud of the fact that our portfolio reflects the American economy with investments across the nation, in industries ranging from food, to specialty manufacturing, business services, healthcare and other important sectors.”
Mr. Greene continued, “The resilience of small businesses across economic cycles and, most recently the Covid pandemic, is truly remarkable. We look forwarding to continuing to create significant value for our investors and, importantly, the great small companies, where we believe that our investors can realize strong and sustained risk-adjusted returns.”
Drew Guff, Managing Director and Founding Partner of Siguler Guff, added, “We are pleased to have received strong support from current and new limited partners, and look forward to the continued success of our small business platform, which features compelling equity and credit offerings. It is a truly exciting time for our nation’s smaller businesses, and we believe that Siguler Guff is optimally positioned to support their growth and strategic expansion.”
Nearly 90% of institutional investors in the Firm’s first small business credit opportunity fund have chosen to continue as investors in Fund II, in addition to a host of new limited partners that include public and corporate pension plans, insurance companies, foundations and family offices.
About Siguler Guff
Siguler Guff is a multi-strategy private equity investment firm with over $15 billion of assets under management and 25 years of investment experience. Siguler Guff seeks to generate strong, risk-adjusted returns by focusing opportunistically on market niches. Siguler Guff’s core investment strategies include small business, opportunistic credit, distressed real estate and emerging markets. Siguler Guff’s investment products include direct investment funds, multi-manager funds and customized separate accounts targeting specific areas of compelling opportunity. Founded in 1991 and headquartered in New York, Siguler Guff maintains offices in Boston, London, Moscow, Mumbai, São Paulo, Shanghai, Seoul, Tokyo, Hong Kong and Houston, Texas. To learn more about Siguler Guff, please visit www.sigulerguff.com.