Cerberus Capital Management To Acquire Home Equity Lender Spring EQ

In a move that signals increasing consolidation in the home equity financing industry, Cerberus Capital Management L.P. announced a definitive agreement to acquire Spring EQ, the company was founded in 2016.

The acquisition will allow Spring EQ to integrate with Cerberus’ Residential Opportunities platform, a global investor in residential mortgage securities and assets. The partnership aims to bolster Spring EQ’s existing capabilities with the operational and technological muscle of Cerberus. Founder and CEO Jerry Schiano, along with the existing management team, will continue to steer Spring EQ upon completion of the transaction.

Schiano said about the pairing, “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, highlighted the deal's potential. “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.”

The deal is subject to regulatory approvals and customary closing conditions and is expected to close in the fourth quarter of 2023. Terms of the deal were not disclosed.