The new fund will look to invest across consumer, small business, and bridge lending.
Neuberger Berman will partner with “high quality” originators as part of the launch of its new specialty finance business, the firm has said in a statement.
The new Neuberger Berman Specialty Finance business will sit within the broader group’s $299bn of assets, of which $60bn is currently invested in alternative investments for both institutions and individuals.
It will seek to identify assets within the consumer, small business, and bridge loan markets with a goal to build short duration, income producing credit portfolios for its clients.
“The group will partner with high-quality originators who have strong underwriting and servicing capabilities,” it said in a release Tuesday.
The investment managers, the firm said, will be using the latest “financial technology” to create diversified portfolios with “robust risk protection”.
Peter Sterling has joined the firm to serve as the head of Neuberger Berman Specialty Finance group. Samuel Porat, managing director of the firm, who also heads up its alternative income strategies will, alongside David Kupperman and Jeff Majit, who co-manage the firm's hedge fund solutions team, also collobarate with Sterling.
"Neuberger Berman Specialty Finance is well positioned to become a global leader within specialty finance," said Sterling.
"As the alternative credit industry has matured, access to high-quality deals and strong investor partnerships will be a key ingredient to success," he added.
Prior to joining Neuberger Berman, Sterling ran alternative lending at Coastland Capital and served as its president, deploying 'several hundred million dollars' of assets.
Previously, he has also invested in commercial and consumer non-performing loan portfolios and was previously a credit arbitrage portfolio manager at several hedge funds including Marin Capital and KBC Alternative Investments.