New investment approach for Sterling builds on its founding mission to work with entrepreneurs to drive transformational growth
CHICAGO, April 18, 2018 – Sterling Partners (“Sterling”), a diversified investment management firm committed to building great companies and inspiring growth, has led a Series A investment round in Cerebro Capital (“Cerebro”), which also included the State of Maryland’s TEDCO (“TEDCO”) fund. Based in Baltimore, Cerebro’s platform is transforming the middle market lending process and making it easier and faster for corporate borrowers and lenders to deploy and secure capital.
Powered by 20 years of data from over 80 banks and a network of lenders with approximately $4.7 trillion in assets, Cerebro is an online platform that allows middle market borrowers to analyze, manage, and source credit facilities. The information Cerebro provides enables borrowers to search and find new loans anonymously, determine the viability of financing or re-financing, and remove many existing deal pain points.
Cerebro has seen explosive growth since its launch in October 2017. In a little less than six months, borrowers have trusted Cerebro to source or manage over $1.0 billion in loans on the platform. Cerebro will use the capital from Sterling’s investment to focus on scaling its online marketplace, broaden the capacity for complex debt transactions, and build out its sales, marketing, and engineering teams. Sterling’s partnership with Cerebro keeps with the firm’s entrepreneurial roots and 30-year history of partnering with founders and owners to accelerate growth.
“Cerebro gives middle market borrowers financial self-awareness that previously had only been available to public companies. Cerebro takes it a step further by giving their borrower users the ability to connect to the lender network that is providing the data. The value created for both borrowers and lenders made this a natural decision for Sterling to become involved,” said Doug Becker, Co-Founder of Sterling Partners.
Bjonerud has over 10 years of experience in corporate finance as both banker and borrower. He most recently worked in corporate finance at Laureate Education, a multibillion dollar, public corporation, where he played an active role in debt and equity transactions. Between his time working as a corporate banker and his time working at Laureate, he dealt firsthand with the frustrating process of originating and managing credit facilities.
“We’re extremely excited about our partnership with Sterling and what this investment means for Cerebro’s future,” said Bjonerud. “CFOs have a fiduciary responsibility to get the best terms possible for their companies yet it’s incredibly time-consuming, difficult, and confusing to navigate the credit markets. We started this platform because there was a clear need in the marketplace to make corporate borrowing more efficient and transparent. With Sterling, we’ll be able to connect even more companies looking for capital with lenders looking for loan opportunities.”
This transaction was facilitated by Miles and Stockbridge P.C. and Perkins Coie LLP.
About Cerebro Capital:
Cerebro Capital’s mission is to revolutionize corporate borrowing by leveraging technology to make the process easier and faster. Borrowers utilize the SaaS platform to understand market trends, anonymously search lenders, determine the viability of financing their deals, and remove existing deal pain points. For more information, visit: https://www.cerebrocapital.com/.
About Sterling Partners:
Sterling Partners is a private equity firm with a distinct point of view on how to build great companies. Founded in 1983 and having invested billions of dollars, Sterling is guided by its stated purpose, INSPIRED GROWTH®, which describes Sterling’s approach to investing in differentiated businesses and growing them in inspired ways. Sterling provides valuable support to the management teams of the companies in which the firm invests through a deep and dedicated team of professionals, including a strong network of outside directors and advisors. The people at Sterling believe in ideas and ideals, in people and in partnerships that drive long-term success. Currently, Sterling manages approximately $2.6 billion assets under management. For more information, visit: www.sterlingpartners.com.
TEDCO provides resources and connections that early stage technology and life sciences companies need to thrive in Maryland. TEDCO’s mission is to discover, invest in, and help build great Maryland based technology companies. Learn more at www.tedco.md.