Deerfield Capital, Pegasus Capital to buy $90 million corporate loans

By Susanna Moon

Chicago, April 14 - Deerfield Capital Corp. said it entered into a venture with Pegasus Capital Advisors LP to invest in underpriced corporate bank loans and other senior secured corporate loans.

Under the management of Deerfield Capital Management LLC, an investment management subsidiary, Pegasus and Deerfield have committed $75 million and $15 million, respectively, for the corporate loans.

"Our partnership with Pegasus is indicative of our belief that the current market environment provides an unprecedented opportunity to purchase high quality loan assets at extremely low prices," Jonathan Trutter, Deerfield's chief executive officer, said in a press release.

"We believe that DCM's long track record and experience in investing in the bank loan market combined with Pegasus' diverse operating advisor industry knowledge and substantial credit underwriting experience will produce attractive risk-adjusted returns," Trutter said.

"We view the well-regarded [Deerfield Capital Management] fixed-income platform as a dynamic way to cautiously access the unusually attractive investment opportunities created by the dislocation of global financial markets," Craig Cogut, Pegasus' founder and co-managing partner, said in the release.

Deerfield Capital Management is an alternative asset manager noted for its expertise in bank loan investing. Deerfield Capital Corp., based in Rosemont, Ill., manages client assets, including bank loans and other corporate debt, residential mortgage-backed securities, government securities and asset-backed securities.

Pegasus is a U.S.-based private equity fund manager that provides capital to middle market companies in many industries.

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