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Cerberus Raises $1.8B In Latest Real Estate Fund, Looks To European Property Debt


Cerberus Capital Management has raised $1.8B for its fourth real estate fund, which the firm said will primarily target European property debt.

The private equity firm’s three previous real estate funds raised more than $3.2B collectively and focused on European debt emerging after the financial crisis, the Wall Street Journal reports. One of the firm’s senior managing directors said the latest fund will allocate over 50% of its proceeds into the same market, which still offers more than $1 trillion of distressed debt on the books of banks from Germany to Spain.

Cerberus is also looking for properties in Brazil, where commercial real estate values have plummeted, in hopes of generating returns between 17% and 20% for its investors.