Sterling Media Capital, Equity Management Launch New Funding Conduit

Sterling Media Capital Group, headquartered in Dallas, has formed a partnership with Equity Management Corp. in a move to possibly gain equity profit in third parties via guarantees of credit, loan and debt securities.

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.