PHILADELPHIA – August 31, 2023 – Spring EQ, a leading provider of home equity financing solutions, announced today that it has entered into a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing.
Spring EQ is a highly rated and fast-growing home equity lender in the United States with a customer-focused salesforce and national network of experienced brokers and partners. Since its founding in 2016, the company has become a trusted partner to customers and brokers through a people-first approach built around flexible solutions and cutting-edge digital processes.
In this next chapter, Spring EQ will partner with Cerberus’ Residential Opportunities platform – a global investor in residential mortgage securities and assets – to support its mission to deliver best-in-class offerings and expand its leadership in the home equity financing market. With the support of Cerberus’ operating and technology capabilities, Spring EQ will enhance its platform through further investment in technology, new commercial opportunities, and growth-based operational initiatives. Founder and Chief Executive Officer Jerry Schiano, alongside the current management team, will continue to lead Spring EQ following the completion of the transaction.
“We’re incredibly proud to be helping individuals and families across the United States achieve their goals,” said Jerry Schiano, Spring EQ Founder and Chief Executive Officer. “Spring EQ has helped redefine the home equity financing process by combining exceptional digital experiences and tailored solutions. This partnership with Cerberus comes at a perfect time in our journey. The Cerberus team’s mortgage expertise, technology capabilities, and operational resources will help propel our growth, better positioning us to make an even greater impact.”
Joe Steffa, Managing Director of Cerberus Residential Opportunities, commented: “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 & Co. LLC 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 subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2023.
About Spring EQ
Spring EQ is a national home equity lender providing flexible and tailored financing solutions directly to consumers with a national network of experienced brokers and partners. Since its founding in 2016, Spring EQ is among the fastest growing and highest-rated home equity financing partners in the United States. Spring EQ offers a broad range of home equity products and delivers a simple and streamlined process that results in faster funding, trustworthy loans, and less frustration for consumers today. To learn more about Spring EQ, visit www.springeq.com.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $60 billion in assets under management across complementary credit, private equity, and real estate strategies. We invest across the capital structure where we believe 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
Contacts
Spring EQ
media@springeq.com
Cerberus
media@cerberus.com
