Guaranty Equity Funding Trust LP hopes to have accrued assets in excess of $100 million before the end of first quarter 2001. According to Sterling Media Capital, some $200 million in initial guarantee applications are now under consideration.
The partnership has been launched with about $60 million in non-cash assets as capitalization, with more on the way, says Paul A. Nussbaum, Sterling's CEO. "The primary objective ... is to issue financial guarantees that can be utilized successfully by portfolio companies," he explains of the fee-based strategy.
A limited partnership has been set up to manage the funding vehicle. The overseers will write financial guarantees for third-party debt that will be secured by the full faith and credit of the partnership, based on its non-cash assets.
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