Cerberus To Introduce Three-year Lock-up Period For Two Hedge Funds

Anonymous User | Login

Cerberus To Introduce Three-year Lock-up Period For Two Hedge Funds

Published: 03-Sep-2009

The company also to stay away from high-profile takeovers for some time

In an attempt to prevent the recurrence of the huge outflows following the purchases of Chrysler and GMAC, Cerberus, the US-based private equity investment group, is introducing a three-year lock-up period to bar investors to withdraw money in two new hedge funds – reported Financial Times.

It has been reported that the two multibillion-dollar funds, Cerberus Partners II and Cerberus International II, are successors to two vehicles that were hit $500 billion in redemptions over the past year, as Cerberus’s high-profile investments soured due to financial crisis.

Officials at Cerberus told the newspaper that the latest move reflects the company's intension to avoid a similar kind of situation they encountered in December 2008, when it unilaterally stoped redemption requests from the two hedge funds to prevent a fire sale of its assets. Mark Neporent, chief operating officer, said that Cerberus' portfolio, excluding the two funds, had recorded an 18% return so far this year and the two hedge funds were up between 1.5 and 3% this year, reported the newspaper.

No items to display

Network Sites

Asset Management Banking Technology BPO & Outsourcing Cards Commercial Banking ECNs and Exchanges Online Banking Payments Retail Banking Risk Management Security

Mail sent successfully

Tell your friend about this article

Please enter a valid email address

Please enter your name

Please enter the mail body

Your Name: *

Your Email: *

Friend's Email: *

Email Body: *: I thought you would be interested in this article : http://www.banking-business-review.com/news/cerberus_to_introduce__threeyear_lockup_period_for_two_hedge_funds_090903/