Neuberger Berman has started a specialty finance group that will invest in consumer and small business loans originated by financial technology companies.
The group, which sits within the firm’s alternative investment business, plans to raise a fund focused on the non-bank loans, according to a person familiar with the matter. The asset manager said Tuesday that Neuberger Berman Specialty Finance will be led by Peter Sterling, previously president of Coastland Capital.
Non-bank lending has been rising with the help of technology, which has made the process of underwriting loans faster and more efficient, Sterling said in a phone interview. He said the opportunities for investment are global, though the U.S. will be a large part of Neuberger Berman’s specialty finance business.
[II Deep Dive: Neuberger Berman Pushes Deeper into Private Equity]
New York-based Neuberger Berman manages $299 billion of assets, including $60 billion in alternative investments. Sterling will work closely with Samuel Porat, who is responsible for alternative income strategies at the firm, as well as David Kupperman and Jeff Majit, who co-manage the hedge fund solutions team, according to the statement.
Sterling joined Neuberger Berman in January and is based in San Francisco. He said his team will be hiring in the short term, but declined to comment further on the group’s expansion plans.
At Coastland Capital, Sterling ran the firm’s alternative lending business, investing several hundred million dollars while developing deep relationships in venture, commercial banking, and private investment communities, according to Neuberger Berman's statement. Earlier in his career, Sterling worked at hedge funds, including Marin Capital, KBC Alternative Investments, and D.E. Shaw.