Guaranty Equity Funding Trust LP hopes to have accrued assets inexcess of $100 million before the end of first quarter 2001.According to Sterling Media Capital, some $200 million in initialguarantee applications are now under consideration.

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The partnership has been launched with about $60 million innon-cash assets as capitalization, with more on the way, says PaulA. Nussbaum, Sterling's CEO. "The primary objective ... is to issuefinancial guarantees that can be utilized successfully by portfoliocompanies," he explains of the fee-based strategy.

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A limited partnership has been set up to manage the fundingvehicle. The overseers will write financial guarantees forthird-party debt that will be secured by the full faith and creditof the partnership, based on its non-cash assets.

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