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Cerberus CEO Stephen Feinberg aborts bid for gunmaker

4 Jul 2013

Cerberus Capital CEO Stephen Feinberg has decided against bidding for gunmaker Freedom Group, which the firm had put up for sale following last year’s Sandy Hook shooting, Reuters has reported.

Cerberus created Freedom Group after buying gun manufacturer Bushmaster in 2006 – the company that built the AR 15 rifle used by the shooter in the Connecticut school.

Its decision to sell came shortly after pension fund CalSTRS said it was reviewing its investment with Cerberus in the wake of the shootings.

Earlier this year Feinberg was reported to be tapping up fellow multi-millionaires to buy Freedom Group, partly to avoiding a low exit for the company

Despite reports that there had previously been unwillingness to finance bids for Freedom Group, the company is currently in talks with a number of potential acquirers. There were also said to be concerns that such a move would unsettle Cerberus’ limited partners.

In May the firm raised $2.61bn for its latest private equity fund, taking its fundraising total for the past two years to $11bn.

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