Cerberus Capital Management LP has raised about $2.8 billion for its fifth real estate fund, beating its $2 billion target. Cerberus Institutional Real Estate Partners V will target direct assets, real estate companies, entities with significant real estate exposure and real estate-related debt, including non-performing loan portfolios. Currently, Cerberus’ real estate platform manages about $26 billion of real estate-related assets, according to the firm.
Cerberus Capital Management, L.P., (collectively with its affiliates, “Cerberus”) today announced the closing of approximately $2.8 billion of commitments for its flagship global opportunistic real estate strategy. Cerberus Institutional Real Estate Partners V, L.P. (“CIREP V”) closed with more than $2.5 billion in commitments with an additional $300 million committed to a dedicated investor fund for the strategy.
CIREP V received broad support from existing and new limited partners, surpassing its initial fundraising target of $2.0 billion. The strategy will leverage Cerberus’ integrated investment platform and proprietary operating expertise to invest in direct assets, real estate companies, entities with significant real estate exposure, and real estate-related debt, including non-performing loan (“NPL”) portfolios.
“The investment landscape plays to the strengths of our global real estate franchise,” said Lee Millstein, President of Cerberus Global Investments and Global Head of Real Estate. “There are market dislocations and macrotrends that are driving compelling opportunities across our broad platform. Our team will continue our disciplined approach to investing opportunistically, establishing innovative partnerships, and applying our operating capabilities and experience to solve complex problems.”
For more than a quarter of a century, Cerberus has been a leading investor in real estate and real estate-related assets. The Firm is one of the largest and most experienced investors in NPL portfolios, partnering with top financial institutions around the world. In recent months, Cerberus has also established joint ventures with market-leading partners to build large scale, institutional platforms of industrial service facilities, logistics centers, and self-storage and cold-storage assets.
Grant Berlin, Global Head of Real Estate Fundraising, added: “We are grateful for the backing of our longstanding limited partners and the trust of many new investors. The ongoing support for our flagship real estate strategy is a testament to our experienced, long-tenured team and the confidence investors have in our platform’s track record of success.”
Cerberus’ real estate platform manages approximately $26 billion of real estate-related assets supported by a team of more than 135 investment professionals and asset managers located in the United States, Europe, Asia, South America, and Australia.
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $53 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.