(updated with correction)
Cerberus Capital Management may debut new hedge funds in the fourth quarter, although specific strategies and target dollar amounts have yet to be determined, Mark Neporent, COO and general counsel, said in a telephone interview. Distressed assets likely will be the focus of any new funds that are launched.
After receiving redemption requests for about 60% of the $7.9 billion managed in existing hedge funds Cerberus Partners and Cerberus International Ltd., the firm suspended redemptions in July; the funds offer semiannual liquidity with six months advance notice.
Cerberus officials are in the midst of restructuring the funds. For investors who decide to stay in the existing hedge funds, new versions will be established — Cerberus Partners II and Cerberus International Ltd. II — with lower fees in exchange for a longer lockup period. Performance fees will be waived at least until investor losses in the original funds are made up. Investors who decide to redeem completely may have to wait as long as four years to receive all of their redemption.
Cerberus manages about $24 billion in hedge, private equity, real estate and distressed asset funds.
