Cerberus Capital Management is seeking more than $3 billion for its latest private equity fund to invest in distressed assets, including non-performing loans and troubled companies in need of restructuring, according to Reuters. Cerberus declined to comment through an external company spokesman.
Cerberus is reportedly targeting $3 billion to $3.5 billion for this fund, called the Cerberus Institutional Partners (CIP) VI. It will have a hard cap of $4 billion, sources told Reuters.
The predecessor CIP V fund finished fundraising in April 2013 at $2.61 billion, short of Cerberus' original $3.75 billion target. CIP V had an annualized net internal rate of return (IRR) of 29.3 percent as of the end of September, according to documents from the California Public Employees Retirement System (CalPERS), a US public pension fund that is an LP in CIP V.
Cerberus was founded in 1992 and has $25 billion in assets under management. It focuses on distressed debt and deep value investing and manages private equity and hedge fund structures. The firm is headquartered in New York and has ten additional offices across the US, Europe and Asia.
Several other alternative investment firms are in the process of raising distressed debt funds. They include Sankaty Advisors, Fortress Investment Group, CarVal Investors and Oaktree Capital Management, with the latter raising as much as $10 billion for its Oaktree Opportunities Fund X.