Cerberus Capital Management

Cerberus Capital Management, L.P. is an American global alternative investment firm with assets across credit, private equity, and real estate strategies. The firm is based in New York City, and run by Steve Feinberg, who co-founded Cerberus in 1992, with William L. Richter, who serves as a senior managing director. The firm has affiliate and advisory offices in the United States, Europe and Asia.
Cerberus has around US$60 billion under management in funds and accounts. The company is a U.S. Securities and Exchange Commission Registered Investment Adviser. Investors include government and private sector pension and retirement funds, charitable foundations, university endowments, insurance companies, family savings and sovereign wealth funds.

History

Cerberus is named after the three-headed dog that guards the gates of the Underworld in Greek mythology. Feinberg has stated that while the Cerberus name seemed like a good idea at the time, he later regretted naming the company after the mythological beast.
Dan Quayle, former Vice President of the United States 1989–1993, who served under President George H. W. Bush, joined Cerberus in 1999 and is chairman of the company's Global Investments Division.
Cerberus has grown to include 11 offices in nine countries. Cerberus's largest locations include New York City, Chicago, and Boise, Idaho.

Areas of focus

Cerberus Capital Management has investments in financial services, healthcare, consumer & retail, government services, manufacturing & distribution, technology & telecommunications, building products, energy & natural resources, apparel, paper, packaging & printing, transportation, commercial services, industrial & automotive, real estate, travel & leisure, and weaponry.
The firm is active in private equity investment, lending, specialty finance, real estate investment, and securities trading. The firm's current investment portfolio includes more than 40 companies around the world with an average hold time of more than five years.
Cerberus maintains the Cerberus Operations & Advisory Company LLC, which consists of senior operating executives supporting the firm's due diligence and assisting its portfolio companies.

Cerberus Operations and Advisory Company LLC (COAC)

Cerberus utilizes an operations team of over 100 professionals to help source, analyze and monitor portfolio investments. Activities performed by members of COAC in the area of control private equity investments, include due diligence, acquisition planning, board membership, special project staffing and, where appropriate, occupying interim or full-time open positions.

Transactions and initiatives

On March 10, 2010, Cerberus entered into a financing deal with GeoEye in which the firm would provide the satellite imagery company funds of up to $215 million.
In March 2010, Cerberus was the lead investor that gained an ownership stake in Panavision as part of a debt restructuring agreement with shareholder MacAndrews & Forbes, the holding company of billionaire Ronald Perelman.
In March 2010, Cerberus agreed to buy New England's largest community-based healthcare system, the not-for-profit Caritas Christi Health Care, for $246 million, then withdrew its non-profit registration and changed its name to Steward Health Care that November.
On April 12, 2010, Cerberus acquired private government services contractor DynCorp International for approximately $1 billion and the assumption of $500 million of debt.
In June 2010, Cerberus agreed to sell Talecris to Spain's Grifols S.A. The transaction closed on June 1, 2011 at a value of $4.2 billion.
On November 19, 2010, Cerberus and Drago Capital acquired a real estate portfolio of 97 bank branches from Spain's fourth largest financial group, Caja Madrid, in a 25-year leaseback transaction.
On March 17, 2011, Cerberus acquired the senior bank debt and completed a debt restructuring of Maxim Office Park, a one million square foot office and logistics complex located between Glasgow and Edinburgh, Scotland.
On March 31, 2011, Cerberus acquired a real estate portfolio consisting of 45 Metro Cash & Carry properties in Germany from the three major shareholders of Metro AG.
On May 16, 2011, Cerberus completed the acquisition of Silverleaf Resorts, for $2.50 in cash per share.
On May 16, 2011, an affiliate of Cerberus agreed to acquire the U.S.-based global billing and payments unit of 3i Infotech Ltd. for $137 million.
On October 4, 2011, Cerberus and Garanti Securities announced the formation of a joint initiative to pursue investments in Turkey with an initial commitment of $400 million.
On October 19, 2011, J.P. Morgan Worldwide Securities Services announced that it was selected by Cerberus to provide fund administration and related securities services for Cerberus's investment funds.
On October 27, 2011, Cerberus and Chatham Lodging Trust closed their purchase of Innkeepers USA Trust for $1.02 billion. Innkeepers operates hotels, including the Marriott, Hyatt, Hilton, and other brands.
On December 22, 2011, Covis Pharma, a specialty pharmaceutical company owned by affiliates of Cerberus, announced that it had agreed to acquire full commercial rights for Fortaz, Zinacef, Lanoxin, Parnate, and Zantac injection in the United States and Puerto Rico from GlaxoSmithKline.
On January 18, 2012, RG Steel, LLC announced that affiliates of Cerberus committed new capital to the company.
On March 8, 2012, an affiliate of Cerberus closed its acquisition of a controlling interest in AT&T Advertising Solutions and AT&T Interactive, which were combined into a new entity YP Holdings LLC. AT&T received approximately $750 million in cash, a $200 million note and a 47-percent equity interest in YP Holdings LLC. David Krantz, former CEO and president of AT&T Interactive, was named CEO of YP.
On May 31, 2012, Cerberus completed the sale of textile company Guilford Mills to Lear Corporation.
On December 18, 2012, the company announced that it would divest its assets in Remington Outdoor Company, formerly Freedom Group. However, as of September 24, 2013, it had not sold any of the Remington Outdoor Company.
In January 2013, it announced a deal to acquire 877 stores in the Albertsons, Acme, Jewel-Osco, Shaw's, and Star Market chains from SuperValu for $100 million and assumption of $3.2 billion of SuperValu debt.
September 16, 2013, Cerberus closed Accurate Metal Solutions. Over 400 employees were laid off.
On March 6, 2014, Cerberus announced a definitive merger agreement with already owned Albertsons and Safeway.
On November 13, 2015, Cerberus agreed a deal to buy £13 billion of subprime mortgages from UK Asset Resolution.
On December 17, 2015, Cerberus announced a $605 million strategic partnership with Avon Products, Inc. According to terms of the agreement, Cerberus will buy 80% of Avon North America. In addition, the investment will result in a nearly 17% stake in Avon Products, Inc.
On January 26, 2016, Keane, a well completion services company owned by Cerberus, agreed to acquire the majority of Canada-based Trican Well Services Ltd.'s U.S. assets for $247 million.
On May 27, 2016, Cerberus sold its 57% stake in Blue Bird Corporation, an independent designer and manufacturer of school buses, to an affiliate of American Securities.
On June 23, 2016, General Electric announced a sale of its consumer finance business, GE Money Bank, to an affiliate of Cerberus.
On July 1, 2016, Cerberus acquired auto parts supplier ABC Group.
On December 7, 2016, Staples, Inc. and Cerberus announced they had entered into an agreement in relation to the sale of a controlling interest in Staples' European operations to a Cerberus affiliate.
In February 2018, Cerberus acquired HSH Nordbank.
In October 2019, Cerberus acquired Stratolaunch Systems, an aerospace company formed by Microsoft co-founder Paul G. Allen in 2011 that has built the world's largest airplane : the Stratolaunch After the acquisition, Stratolaunch is now focusing on offering high-speed flight test services.
In March 2020, Cerberus faced backlash after threatening to close the unprofitable Easton Hospital in Lehigh Valley, Pennsylvania, amid the coronavirus pandemic.
In October 2021, Cerberus sold the securitization fund manager Haya Titulización to Beka Finance.
In November 2022, Cerberus acquired the Agila Subic Shipyard ahead of an impending return of more frequent visits by U.S. Navy vessels to the area of Central Luzon in the Philippines, amid rising tensions with China.
Additional involvements by sector

Pharmaceuticals

In December 2004, the company announced the acquisition of Bayer's plasma products business and renamed it Talecris Biotherapeutics. It purchased Talecris for $83m, and sold the bulk of its shares in October 2009, for a net gain of $1.8bn.

Paper products

The company acquired MeadWestvaco's paper business for $2.3B in 2005 and renamed it NewPage. Cerberus also purchased, from Georgia Pacific Corporation, its Distribution Division/Building Products and all of its associated real estate. It renamed this new company BlueLinx Holdings, based in Atlanta.

Aviation

The Portuguese company TAP Portugal was bought by a consortium that included David Neeleman and Humberto Pedrosa.

Government services (military, energy, and food & drug)

Cerberus owns IAP Worldwide Services, which bought Johnson Controls' World Services division in February 2005. Previously owned Multimax. Cerberus owns Tier 1 Group, a private company that provides military training.

Real estate

Through investment affiliate Cerberus Real Estate, the company has been making direct equity, mezzanine, first mortgage, distressed and special situation investments in all asset types. Cerberus also has a minority stake in Miami Beach-based LNR Property, a large real estate development and investment firm through subsidiary Riley Property. In October 2015 Cerberus completed an acquisition from Building and Land Technology of a portfolio of single family rental homes to be managed by its affiliated company, FirstKey Homes, LLC; there are currently more than 6,000 homes in the portfolio.