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Cerberus Closes USD5.1bn of commitments for Global NPL Strategy

Cerberus Capital Management has closed approximately USD5.1 billion of commitments for its global non-performing loan (NPL) strategy. 

Cerberus Global NPL Fund initially targeted USD3.5 billion in commitments and closed approximately USD4.1 billion of commitments from existing and new limited partners. In addition to the Global NPL Fund, Cerberus raised over USD1.0 billion of commitments in separately managed accounts (“SMAs”) for its global NPL strategy.

The global NPL opportunity represents a multi-trillion dollar market with attractive investment opportunities that few managers are equipped to pursue. In addition to significant opportunities in Europe, Cerberus believes compelling long-term opportunities to invest in NPL portfolios exist in other parts of the world, including China, India, and Brazil.

With approximately USD5.1 billion in total commitments, Cerberus expects to continue its track record as one of the largest and most experienced NPL investors in the world. Cerberus’ NPL platform is supported by its industry-leading investment team with 46 investment professionals that work in concert with Cerberus’ proprietary servicing platforms, including Cerberus European Servicing, along with Cerberus’ third-party servicing partners in local jurisdictions.

“We greatly appreciate the support from our existing limited partners, as well as our new investors, who recognise our proven track record investing in NPLs across geographies and business cycles,” says Seth Plattus, Chairman of the Cerberus Capital Formation Committee.

Lee Millstein, President of Cerberus Global Investments and Global Head of Real Estate for Cerberus, adds: “We have built an industry-leading NPL platform with the expertise, resources, and scale to partner with leading banks and provide best-in-class servicing. We are uniquely positioned to benefit from the strong NPL opportunities around the world and we look forward to continuing to be a trusted, strategic partner to financial institutions.”

While the firm has managed single-strategy NPL funds for SMAs and invested in NPL portfolios from its flagship multi-strategy funds, the Global NPL Fund is Cerberus’ first dedicated NPL fund. Over the past two decades, Cerberus has executed more than 215 NPL transactions across 17 countries globally, with a total transaction size in excess of USD65 billion. Since 2013, Cerberus has been the leading purchaser of European NPL portfolios, investing approximately USD15 billion in equity.


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