NEW YORK and SINGAPORE, November 1, 2018 – Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing, today announced the strategic acquisition of SGI Frontier Capital (“SGI”), a leading private equity firm focused on frontier markets in Asia and Africa.
Headquartered in Singapore with over 20 professionals across six locations, SGI has an extensive track record of direct investment in dynamic frontier markets, including Ethiopia, Georgia, and Mongolia. Since its founding over ten years ago, SGI has completed more than 30 transactions and currently manages a diversified portfolio of investments in a variety of key sectors, including consumer goods, clean energy, real estate, healthcare, and building materials.
“The rapid growth in frontier-market countries can offer attractive opportunities to investors with the right experience and on-the-ground presence,” said Steve Feinberg, co-Founder and co-Chief Executive Officer of Cerberus. “SGI is an established leader with a proven track record in some of the world’s fastest growing economies. We look forward to partnering with their talented team and advancing Cerberus’ investment activities in emerging and frontier markets.”
Gabriel Schulze, Founding Partner of SGI, commented, “With Cerberus, we are joining a global leader in alternative investing with deep resources and highly complementary platforms. We look forward to leveraging our combined investment expertise and operating experience to drive value in existing and future investments. Further, as part of Cerberus, we remain aligned and committed to ensuring our investments have a positive impact beyond achieving successful financial results, an approach core to SGI since our inception.”
Mr. Schulze and Alexander Benard, Managing Partner of SGI, will lead Cerberus’ frontier markets investment platform as Senior Managing Directors and Co-Heads.
Mark Neporent, Chief Operating Officer of Cerberus, added, “We are excited to welcome the SGI team to the Cerberus family. Not only are our capabilities and footprints complementary, we are aligned culturally and philosophically. Cerberus and SGI firmly believe in the power of business, economics, and investment to create social value. Together, we can direct even greater resources to areas of the world where the scarcity of private capital creates opportunities to generate attractive risk-adjusted returns and make valuable contributions to development.”
Founded in 1992, Cerberus is a global leader in alternative investing with more than $35 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.
About SGI Frontier Capital
SGI Frontier Capital is a private equity firm focused on the world’s most dynamic frontier markets. Over the past decade, SGI has pioneered a unique approach to successfully investing in frontier markets. That approach combines rigorous financial analysis, a deep understanding of the local culture and business community, and strong in-country relationships. SGI looks for frontier markets that are undervalued because the global investment community either overestimates the risks related to the market, or underappreciates the market’s growth potential. The scarcity of capital in these markets means that SGI is able to generate high risk-adjusted rates of returns while at the same time making valuable contributions to a country’s development.
Chief Communications Officer, Cerberus Capital Management