Investment Strategies

Since inception, Siguler Guff has managed over $18 billion of investor commitments, of which over $4 billion have been in separate accounts and other advisory activities.

Distressed, Special Situations and Specialty Finance

Distressed Opportunities Funds

Investor Commitments: 
$5.8 billion

Siguler Guff’s Distressed Opportunities Funds are diversified portfolios that invest in the securities and other interests of companies, structures or assets undergoing financial distress, operating difficulties or restructuring. The portfolios use an active management, broad-based approach and include corporate debt and equity, structured credit, real estate, other special situations and niche opportunities, as well as secondary investments. The Firm takes a dynamic approach, looking across geographies, asset classes and strategies to tactically allocate capital to investments appropriate to the market opportunity and cycle. Siguler Guff actively reevaluates market conditions to target market inefficiencies and dislocations in value which are inherently limited in time. The strategy is implemented through a variety of fund structures, separate accounts, joint ventures, secondary transactions, and direct investments / co-investments.

Trade Finance Opportunities Fund

Investor Commitments: 
$263 million

Through the Distressed Opportunities Funds, Siguler Guff identified a unique opportunity to take advantage of the disconnect between mandatory new capital charges for trade finance assets and low expected losses. Siguler Guff’s Trade Finance Opportunities Fund seeks to structure and enter into separate accounts or joint ventures with operating partners to negotiate investments primarily in trade finance regulatory capital relief transactions and to own, hold, sell or otherwise dispose of such investments.

Secondary Opportunities Fund

Investor Commitments: 
$337 million

Siguler Guff has been investing in the secondary market since 2010 through its distressed investment platform. The Firm focuses on special situations/credit-focused secondary market opportunities including purchasing interests in funds managed by traditional distressed managers and out-of-favor managers/fallen angels, side pocket liquidations, and value and yield-oriented strategies.

Real Estate
Investor Commitments: 
$1.8 billion

Siguler Guff’s Distressed Real Estate Opportunities Funds, DREOF I, DREOF II and DREOF IIA, are diversified portfolios that invest in various types of real property interests, including equity interests in commercial property, commercial mortgages and commercial mortgage-backed securities, and the debt and equity securities of real estate operating companies and real estate investment trusts. The portfolios target high quality properties, primarily in the U.S. and Europe, which have deteriorated in value due to high levels of vacancy and deferred maintenance issues resulting from overleveraged capital structures. Siguler Guff employs a value-oriented, cycle-aware and structure-agnostic strategy to target the evolving opportunity in the current cycle. The Firm seeks to create a program with access to a broad universe of value opportunities at lower fees and with better governance than the traditional opportunity fund or fund-of-fund models, through greater control and alignment of managers.

Siguler Guff’s real estate experience dates back to 1993 when the Firm, in partnership with a leading small business lender, formed Business Mortgage Investors, Inc. in the wake of the Savings and Loan Crisis to purchase performing small business mortgages from the Resolution Trust Company and the Federal Deposit Insurance Corporation.

Small Business

Small Buyout Opportunities Funds

Investor Commitments: 
$2.7 billion

Siguler Guff’s Small Buyout Opportunities Funds are diversified portfolios that invest in small buyout funds (funds capitalized with less than $250 million) and small-lower middle market companies (companies with $3-$15 million of EBITDA) which are difficult for many investors to access. The program targets specialized, small, yet well-established, companies that are typically family-owned, founder-owned and/or owner-operated. Siguler Guff believes that the small and lower middle market offers inefficiencies and a variety of appealing characteristics, including substantial deal flow, less competitive transactions, lower purchase multiples, low leverage and significant value creation potential. To effectively and efficiently target this segment of the market, Siguler Guff works with small buyout fund managers as both a limited partner and a co-investment partner. The Firm seeks to partner with managers who have reliably demonstrated the ability to acquire high-quality companies at purchase price and leverage multiples below prevailing market multiples, stemming from their ability to source robust deal flow and exert a disciplined investment style.

Small Business Credit Opportunities Fund and Separate Accounts

Investor Commitments: 
$300 million

Siguler Guff’s Small Business Credit Opportunities Fund, and related separate accounts, target the small business lending space. Beginning in 2015, Siguler Guff identified a unique opportunity to leverage its position as a leading equity investor in the U.S. small and lower middle market buyout space by investing debt capital directly into deals originated by the Firm’s many fund sponsor relationships. This investment strategy offers investors access to an attractive but difficult to reach market through a variety of debt investments that can provide strong current yield and risk-adjusted returns.

Emerging Markets

BRIC/Global Emerging Markets Opportunities Funds and Emerging Markets Separate Accounts

Investor Commitments: 
$3.0 billion

Siguler Guff’s BRIC/Global Emerging Markets Opportunities Funds are diversified portfolios that selectively invest in the rapidly growing economies of Brazil, Russia, India and China, and other emerging markets with attractive private equity characteristics. The Firm targets small and medium-sized businesses that benefit from the expanding middle class, growth of local industries and growth in per capita GDP of these emerging economies. Siguler Guff partners with local teams who are capable of sourcing attractively priced, high-growth companies in non-competitive processes and who focus on fast growing Tier II and Tier III cities and regions.

Russia Partners Funds

Investor Commitments: 
$1.3 billion

Operating since 1991, Russia Partners is a leading private equity investor in Russia and the countries of the former Soviet Union. Russia Partners has managed six private equity funds and more than 65 investments. The core investment strategy of Russia Partners is to make direct equity and equity-related investments in fast-growing medium-sized companies operating in industries that meet the developing demands of the region’s rapidly growing and maturing middle class. Russia Partners’ founding partners have worked together for over 20 years, investing in the region through numerous economic cycles, including the economic crises of 1998 and 2008.

RP Tech

Investor Commitments: 
$93 million

RP Tech was established in 2011 to make direct equity and equity-related investments in high-growth businesses in areas related to technology and innovation in Russia and the countries of the former Soviet Union, as well as in companies that are implementing global technologies and processes throughout this region.

Click here to visit the Russia Partners website

Separate Accounts
Investor Commitments: 
$3.7 billion

Siguler Guff recognizes the need for certain clients to maintain a unique degree of focus and diversification within their private equity portfolios, and consequently works with select clients to provide customized solutions through separate accounts. The Firm currently manages separate accounts with aggregate investor commitments of approximately $3.7 billion on behalf of clients such as public and corporate pension funds, sovereign wealth funds, unions, endowments, foundations and superannuation funds.

Siguler Guff began managing its first separate account in 1993 and has prudently increased the number of separate accounts that it manages over time. These portfolios include a range of investment strategies such as buyouts, growth capital, distressed and special situations, venture capital, mezzanine, real estate, and secondary investments that invest globally across North America, Europe, and the emerging markets. Siguler Guff’s separate account mandates typically include direct investments / co-investments as well as underlying fund investments and leverage resources across the Firm to manage customized portfolios for investors.

As an advisor, Siguler Guff evaluates the global private equity market, assesses the best investment opportunities in the market at any given point in time and provides specific advice on sectors of particular interest to its clients. Siguler Guff provides extensive due diligence and a comprehensive evaluation of fund managers and direct investments / co-investments in these sectors. The Firm manages all transactions (investor capital calls and distributions) and provides consolidated, customized client reports and portfolio analysis. Siguler Guff also advocates on behalf of its clients through advisory board participation and active management of underlying investments.

Advisory Activities and Other Strategies

Venture Lending & Leasing

Investor Commitments: 
$374 million

Venture Lending & Leasing was formed as a joint venture between Siguler Guff Advisers and Western Technology Investments in 1994. Siguler Guff served as a co-adviser to the first three Venture Lending & Leasing funds. Starting with Venture Lending & Leasing IV, Siguler Guff's role transitioned to that of a special limited partner.

The Venture Lending & Leasing funds were organized to provide asset-backed financing to carefully selected venture capital-backed companies in the form of secured loans and equipment leases and in exchange for current coupon payments and equity warrants. Loans to each company range from $1 million to $25 million, with warrant coverage of 7% to 12% of the loan amount. Venture Lending & Leasing provides an alternative, carefully structured layer of financing that complements venture capital equity. 

Siguler Guff Capital Partners

Investor Commitments: 
$265 million

Established in 1999, Siguler Guff Capital Partners is a unique program in which Siguler Guff co-invests with investors in top-quality, best of breed private equity funds, both domestically and internationally, across a range of opportunities including buyouts, venture capital, distressed, mezzanine financing, and special situations/turnarounds. The Firm identifies, evaluates, and accesses these unique private equity opportunities and allows each investor in the Siguler Guff Capital Partners program to decide on a case-by-case basis whether to participate. In most cases, access to these top-tier private equity firms and investment minimums would otherwise be prohibitive to smaller investors.

WMAM Funds

Investor Commitments: 
$529 million

In April 2009, Siguler Guff became the investment adviser to the WMAM funds, a portfolio of four multi-manager funds and one direct investment fund that were part of a joint venture between BNY Mellon and WestLB.

Note: Investor commitments for Siguler Guff’s dedicated emerging markets and small business separate accounts are included in the Separate Accounts section and also in the respective strategy section.