PHILADELPHIA – August 31, 2023 – Spring EQ, a leading force in the home equity financing sector, has announced its acquisition by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a globally recognized alternative investment firm. This strategic move signals a new chapter for Spring EQ, promising to amplify its commitment to providing innovative financial solutions and solidifying its position as a top-tier home equity lender.
Spring EQ has rapidly distinguished itself within the United States as a customer-centric and highly-rated home equity lender. The company’s success is built upon a robust network of experienced brokers and partners, coupled with a dedicated salesforce. Since its inception in 2016, Spring EQ has prioritized a people-first approach, fostering trust with both customers and brokers. This approach is characterized by flexible financing options and the integration of cutting-edge digital processes, streamlining the borrowing experience.
Looking ahead, Spring EQ is set to collaborate with Cerberus’ Residential Opportunities platform, a prominent global investor specializing in residential mortgage securities and assets. This partnership is designed to bolster Spring EQ’s core mission: to deliver unparalleled product offerings and to further expand its influence in the competitive home equity financing market. By leveraging Cerberus’ extensive operational and technological resources, Spring EQ is poised to enhance its existing platform. These enhancements will be driven by strategic investments in advanced technology, the pursuit of new commercial opportunities, and the implementation of growth-oriented operational initiatives. Jerry Schiano, the Founder and Chief Executive Officer of Spring EQ, will continue to steer the company, along with the current leadership team, ensuring continuity and stability following the transaction’s completion.
“We are incredibly proud of the role Spring EQ plays in empowering individuals and families across the United States to reach their financial aspirations,” stated Jerry Schiano. “Spring EQ has been at the forefront of redefining home equity financing, merging exceptional digital experiences with customized solutions. This alliance with Cerberus arrives at an ideal juncture in our progression. The Cerberus team’s deep expertise in mortgage markets, coupled with their technological capabilities and operational resources, will be instrumental in accelerating our growth trajectory, enabling us to deliver an even greater impact for our customers and Eq Partners.”
Joe Steffa, Managing Director at Cerberus Residential Opportunities, shared his perspective: “The demand for effective home equity solutions is rapidly increasing, and Spring EQ has firmly established itself as a leader in this expanding market. In an environment marked by rising interest rates and unprecedented levels of untapped residential home equity across the United States, Spring EQ is providing American homeowners with a more accessible and transparent pathway to leverage their home’s value. We are enthusiastic about joining forces with Jerry and his team to elevate customer experiences and extend Spring EQ’s reach to a broader audience. We see significant potential in supporting Spring EQ and their network of eq partners.”
Cerberus received legal counsel from Dechert LLP and Dentons US LLP, with Morgan Stanley & Co. LLC acting as their financial advisor. Spring EQ’s legal advisors were Katten Muchin Rosenman LLP, and GreensLedge Capital Markets LLC served as their financial advisor.
The acquisition remains subject to standard closing conditions and regulatory approvals and is anticipated to be finalized in the fourth quarter of 2023.
About Spring EQ
Spring EQ stands as a national leader in home equity lending, committed to delivering adaptable and personalized financing solutions directly to consumers, supported by a nationwide network of seasoned brokers and eq partners. Since its founding in 2016, Spring EQ has emerged as one of the fastest-growing and highest-rated home equity financing providers in the United States. Spring EQ offers a comprehensive suite of home equity products, characterized by a simplified and efficient process designed to provide faster funding, reliable loan options, and a more seamless experience for today’s consumers. For further details about Spring EQ, please visit www.springeq.com.
About Cerberus
Established in 1992, Cerberus is a global frontrunner in alternative investing, managing approximately $60 billion in assets across integrated credit, private equity, and real estate strategies. Cerberus invests across the capital structure, leveraging its integrated investment platforms and proprietary operational capabilities to enhance performance and generate long-term value. Their experienced teams collaborate across asset classes, sectors, and geographies to pursue robust risk-adjusted returns for their investors. For additional information about Cerberus, please visit www.cerberus.com.
Contacts
Spring EQ [email protected]
Cerberus [email protected]
