Cerberus Capital co-founder Stephen Feinberg is reportedly tapping up fellow multi-millionaires to buy the maker of the Bushmaster assault rifle used in the Sandy Hook school shooting his firm is desperately trying to sell.
Feinberg, pictured, and other Cerberus senior partners are putting together a consortium to buy Freedom Group according to Reuters, which cited three sources familiar with the situation.
Distressed asset investor Cerberus revealed it planned to exit its stake in Freedom four days after the massacre in December last year, but the sale has got off to a slow start so far.
Its decision to sell came as CalSTRS, the country’s second largest pension fund with $155bn under management, said it was reviewing its investment with Cerberus in the wake of the shootings.
CalSTRS had invested $751.4m with Cerberus by the end of March 2012 according to its website.
Cerberus created Freedom Group after buying gun manufacturer Bushmaster in 2006.
Several interested parties were given access to Freedom’s financial information earlier this month as Cerberus attempt to escalate bidding into a more formal auction.
Potential investors were thought to include fellow buyout houses looking to pick up underpriced assets, with a deal potentially raising up to $1bn.
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