A subsidiary of Emerald Asset Management Inc. of Manheim Township has combined with a subsidiary of Malvern-based Beltraith Capital LLC, according to a news release.
EmStone Advisers LLC will be the new entity formed from the combination of Emerald Direct Lending Advisers and Beltraith subsidiary StoneRidge PMG Advisers, though the two will continue to operate separately and no employees of either company will have to relocate.
EmStone will work in the direct lending market, also known as peer-to-peer lending, in which banks are cut out as intermediaries. Peer-to-peer lending identifies borrowers with mostly good credit histories, but who have trouble accessing traditional loans. Emerald Direct Lending Advisors started in 2013 when its parent, Emerald Asset Management, acquired Direct Lending Capital LLC of California.
EmStone will be jointly owned by Beltraith and an Emerald subsidiary, with Beltraith holding majority ownership of an unspecified amount.
Both StoneRidge PMG and Emerald Direct Lending also will continue to operate independently.
Beltraith CEO Steven L. Sanders said that in a low-interest-rate environment, the company had been looking for a way to increase yield for his investors, as the company specializes in fixed-income investment portfolios.
“The direct lending space is a way to do that,” he said. “By making this partnership, we don’t have to reinvent the wheel.”
Emerald CEO Joe Besecker has known Sanders for 20 years, and the new company allows Emerald to stay in the direct lending space as well as bring in other professionals from StoneRidge.
“It’s the best of both worlds,” he said. “This (direct lending) space has grown even more than we originally anticipated.”