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Cerberus explores exit options for LPs looking to offload Freedom Group

9 Dec 2013

US distressed investment firm Cerberus  is exploring ways that its LPs can exit gunmaker Freedom Group, after so far failing in its attempts to sell the company, Bloomberg has reported.

The firm acquired gun maker Bushmaster in 2006, creating Freedom Group following the merger with a number of other companies. The spotlight was placed on the company last year, when one of its Bushmaster rifles was used in the Sandy Hook massacre in Newtown, Connecticut.

At the time, Cerberus vowed to sell its stake in Freedom Group, with at one point Cerberus CEO Stephen Feinberg reported to be considering an acquisition of the company to provide an exit for investors.

Cerberus is looking to gain a new debt facility to allow select Cerberus LPs to exit their holding. Investors including CalSTRS, the country’s second largest pension fund, were said to be reviewing their investment with Cerberus in the wake of the shootings.

Cerberus previously sought to float the company, though pulled the scheduled IPO in April 2011.

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