Cerberus Capital Management is seeking to raise $3.75 billion for its first major investment fund since the financial crisis, The Wall Street Journal reports. The new fund will be half the size of the $7.5 billion fund Cerberus tapped in part to buy Chrysler Group and GMAC. The move comes after the New York–based company suffered setbacks from investments in Chrysler and GMAC.
Cerberus had invested less 7 percent of its assets in the firms and had also hired investors to buy some of its stakes. The investment in middle-market companies will include acquisition of debt, its conversion to equity and providing owners a stake in a restructured company controlled by the investment firm.
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