Cerberus Capital Management LP completed its fundraising activities for its latest private equity fund. According to two anonymous sources, it had raised US$2.61 billion to invest in distressed assets.
This latest round brought the capital raised by the private equity firm in the last two years to nearly US$11 billion. Cerberus Institutional Partners V (CIP V) is the first Cerberus private equity fund that completed its fundraisng after it had recently announced the plan to sell the Freedom Group Inc. The company is the maker of the Bushmaster rifle that was used by the gunman in the slayings at the Sandy Hook Elementary School in Newtown, CT.
CIP V started its marketing activiites back in 2011 with a US$3.75 billion target but later on modified the target to just between US$3 billion and US$3.5 billion. The US$11 billion Cerberus fund raised was from operational buyouts and distressed assets and securities purchased, such as debt and other mortgage investments.
Cerberus was best known for its investment in Chrysler, has an investment portfolio in a wide range of sectors such as real estate, banking and retail businesses. It recently purchased a chain of stores from retail giant Supervalu Inc.
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