Cerberus closes $4bn fund on hard-cap

The CIP VI, a hybrid equity and credit fund, is the third vehicle the global asset manager has closed in 2017.  

Cerberus Capital Management has raised $4 billion for its hybrid equity and credit fund, the asset manager said on Thursday. 

Cerberus Institutional Partners VI reached its hard-cap with commitments from more than 150 investors across the globe, including public and corporate pension plans, endowments, foundations, insurance companies, sovereign wealth funds, family offices, and high-net-worth-individuals, according to a statement. 

Limited partners committed to the CIP VI include the Louisiana State Employees Retirement System ($125 million), Pennsylvania Public School Employees' Retirement System ($200 million), and the University of Louisville Foundation ($4 million), PDI data shows. 

The fund surpassed its original fundraising target of $3.5 billion, Seth Plattus, chief administrative officer at Cerberus, said in the statement. The CIP VI invests opportunistically in private equity, non-performing loans, corporate credit, distressed debt, and mortgage securities.

Schulte Roth & Zabel, led by partners Alan Waldenberg and Jason Kaplan, advised Cerberus on the fund.

The final close of CIP VI represents the third fund that Cerberus has closed so far this year, the company said.  

Last month, the firm closed its mid-market direct lending fund, Cerberus Levered Loan Opportunities Fund III, on $2.05 billion. San Francisco Employees' Retirement System committed $100 million to that senior debt fund, PDI data shows.

And in January, the firm closed its fourth global opportunistic real estate fund, Cerberus Institutional Real Estate Partners IV, on $1.8 billion. SERS also committed $100 million to this fund, while the Florida State Board of Administration invested $200 million and the Texas Permanent School Fund invested $75 million. 

Cerberus Capital Management has more than $30 billion under management across its global credit opportunities, private equity and real estate strategies.