Cerberus Capital Management said to eye $3bn for latest flagship distressed buyout, debt fundraise

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Distressed investment specialist Cerberus Capital Management is reportedly eyeing up to $3bn for its latest flagship fundraise.

That is down on the $4bn it collected for its previous flagship fund, Cerberus Institutional Partners VI, in 2017. Reuters reported that the firm is in the early stages of raising Fund VII, citing unnamed people it said were familiar with the matter.

It said the $2.6bn Cerberus Fund V from 2012 was tracking at a 1.7x multiple as of the end of March, citing data from CalPERS.

Reuters said Fund VI had “struggled to generate a profit” as of September 2019, with a 1.06x return, but that vehicle is still well within its investment period and two years of activity is very early to be judging it as a failure.

Last year Cerberus was said to be looking to raise $3bn its first standalone private equity fundraise, rather than a multi-asset vehicle, but no further details about that fund have been forthcoming.

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