Report: Cerberus to target distressed financial institutions

The private equity firm’s chairman, John Snow, has said Cerberus will raise a fund dedicated to undervalued assets under distress due to current market dislocation. He also said Cerberus funds 'are open' to Chinese sovereign fund investment.

Cerberus Capital Management will reportedly join many of its peers in raising a dedicated distressed investment fund to target assets including undervalued financial institutions.

“The valuations of a lot of financial institutions have them oversold, undervalued,” firm chairman John Snow told Reuters during a conference in Beijing. “For investors who don't have short-term liquidity requirements, who can wait a while, there will be significant returns.”

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