Cerberus closes fifth fund on $2.61bn

Greg Gille
@unquotenews
02 May 2013

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Cerberus Capital Management has raised $2.61bn for CIP V, a fund focused on turnarounds and distressed situations, according to reports.

Cerberus is believed to have started raising the fund in 2011 with a $3.75bn target, but later revised its expectations to $3-3.5bn. The firm closed its previous fund, CIP IV, on $7.5bn in 2006. It has more than $20bn of assets under management.

Cerberus's fifth fund is expected to invest in distressed securities as well as operational turnarounds, mainly in the US and western Europe.

The GP's recent European deals include UK-based tenanted pub group Admiral Taverns, which it bought from Lloyds Banking Group earlier this year. The deal was said to be worth up to £200m.

Cerberus also came into the public eye for being the backer of arms manufacturer Freedom Group – one of the company's rifles was used in the Sandy Hook shooting in the US in December last year. Cerberus had invested in Freedom Group in 2006 and shortly after the incident announced it would sell its entire stake in the business as soon as possible.