Cerberus Capital Management, a New York-based private equity firm, is preparing to place its clients seeking to withdraw their money, from one of its hedge funds into a special purpose vehicle for up to three-and-half years – reported Reuters.
In a letter to the investors, Stephen Feinberg, Founder of Cerberus, wrote: “We are embarrassed and disappointed by our 2008 performance, and we feel a huge obligation to you to turn this around.” According to its investors, who wish to withdraw their funds, will have to wait until 2013, reported Wall Street Journal.
On the other hand, investors who intend to stay with the firm will have their funds invested in a new fund – Cerberus Partners II, till June 30, 2010. In return, the company will waive 60% of the fee it collects for two years, once the fund’s losses have been recovered, the letter said.
“In the future, we will seek to avoid transactions that receive the publicity that some of our more recent investments attracted. We never intended to receive the publicity surrounding those investments,” he further added citing last year’s high profile purchase of Chrysler.
