Cerberus Capital Management Raises $4B For Sixth Multi-Strategy Fund

Apr 6 2017 | 6:42pm ET

Global private investment manager Cerberus Capital Management has held a final close for its sixth flagship multi-strategy fund, raising a total of $4 billion in capital commitments and hitting the fund’s hard cap. 

The new fund, named Cerberus Institutional Partners VI, can invest opportunistically across private equity, non-performing loans, corporate credit & distressed debt, and mortgage securities & assets, the company said in a statement. It received support from more than 150 investors globally, including public and corporate pension plans, endowments and foundations, insurance companies, sovereign wealth funds, family offices, and high net worth individuals. It substantially exceeded the company’s initial target of $3.5 billion.

Fund VI It is the company’s third fundraise to close so far this year,  In January, Cerberus raised $1.8 billion for its fourth global opportunistic real estate fund, Cerberus Institutional Real Estate Partners IV, while last month its direct lending affiliate, Cerberus Business Finance, raised $2.05 billion for Cerberus Levered Loan Opportunities Fund III.

"We are pleased to mark the close of CIP VI, which exceeded the initial fundraising target of $3.5 billion and reached the hard cap of $4 billion,” said Seth Plattus, chief administrative officer of Cerberus, in the statement. “This successful fundraise demonstrates the confidence these investors have in Cerberus' experienced team and our multi-strategy approach of pursuing unique and compelling risk-adjusted opportunities."

New York-based Cerberus Capital Management was co-founded by Steve Feinberg and William Richter in 1992. The company has become one of the world's leading private investment firms, with more than $30 billion under management invested across three complementary strategies: global credit opportunities (which includes non-performing loans, corporate credit & distressed debt, mortgage securities & assets, and direct lending); private equity; and real estate. 

In Depth

Steinbrugge: Hedge Fund Branding Drives Asset Flows

Apr 4 2017 | 8:52pm ET

Hedge funds with less than $250 million in AUM represent a vast majority of the...


Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Dunn: It's Time For Contrarian Marketing

Apr 6 2017 | 5:52pm ET