The foundation of Cerberus is investing in corporate credit, with a primary focus on stressed and distressed debt of middle market companies.
Over the past 25 years, the Cerberus Corporate Credit platform has invested approximately $32 billion in more than 2,100 separate investments in stressed and distressed company debt, including multiple billions of capital per year during periods of market dislocation, such as following the Asian Financial Crisis (1998), the early 2000s recession (2001-03), and the Great Financial Crisis (2008-2011).
We have more than 25 dedicated investment professionals with coverage in the United States, Europe, and emerging markets, as well as a dedicated Financial Services Special Situations desk. We invest in countries around the world at all levels of the capital structure – from debt (first lien bank debt, second lien loans, and high yield bonds) to undervalued equity.
Our team employs a rigorous, value-oriented approach. We emphasize exhaustive investment research and due diligence, leveraging strong cooperation among our offices and investment professionals across investment disciplines.
Our team brings a creative and flexible approach to the restructuring process, working closely with management teams, creditors and business owners to craft successful financial and operational solutions.
The Cerberus Corporate Credit Edge
Experienced, Tenured Team
Our cohesive Corporate Credit team consists of tenured investment professionals, many having worked together for more than 13 years. With experience across multiple cycles, our investment team has substantial expertise in trading and sourcing debt, and in navigating complex restructuring processes.
We employ “private equity” style due diligence including comprehensive company, industry, operational, and competitive evaluations with a focus on operational risk and opportunity. We constantly evolve our opportunity funnel with more than 500 companies actively followed at any given time.
Focus on Downside Protection
We generally favor senior and secured debt over junior and unsecured credit investments. Our team rigorously underwrites downside scenarios, potential legal and structural protections and actively develops hedging strategies to mitigate company, industry, and macro risks.
When appropriate, we leverage Cerberus’ broad investment and operating platforms, including Cerberus Operations and Advisory Company, Private Equity, Middle-Market Direct Lending and Real Estate, for industry expertise and contacts, company specific insight, operational assessment, and asset valuation support.
The Cerberus Corporate Credit Platform has invested more than $32 billion across multiple credit cycles.