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Cerberus Business Finance Raises $2.05B for Middle-Market LBO Fund

March 03, 2017, 07:03 AM
Filed Under: Investment Financing

Cerberus Business Finance, an affiliate of Cerberus Capital Management, L.P., announced that it completed the final closing of its latest middle-market direct lending fund, Cerberus Levered Loan Opportunities Fund III. The aggregate Fund III closing amount of $2.05 billion exceeded its target of $1.5 to $2.0 billion. Since January 2016, CBF has raised over $6.2 billion of capital commitments including $3.5 billion of equity commitments among Fund III and four separate managed accounts and $2.7 billion of fund leverage facility commitments.

Fund III represents an extension of CBF's Loan Opportunities Strategy, with a broad base of new and existing investors that include government and corporate pensions, endowments, insurance companies, family offices, foundations, non-profit organizations, fund of funds, and high net worth individuals.

Daniel Wolf, Chief Executive Officer of Cerberus Business Finance, said, "The close of Fund III is the latest milestone in over 21 years of work establishing our successful direct lending platform which serves U.S. middle-market companies. Our broad array of PE sponsors and other client relationships consistently turn to us for certainty of transaction closure and terms, flexible capital structures, and speed of execution through a reputable, well-known franchise."

CBF currently manages 22 funds with over $13 billion of capital dedicated to its middle-market direct lending business. In 2016, CBF completed over 70 transactions, primarily as lead agent, totaling $5.3 billion of credit facilities.

Beginning in 1995 with predecessor entities, CBF has managed funds and accounts focused on the direct origination of senior secured loans predominantly to U.S. middle-market companies across broad industry categories.  The vast majority of CBF's borrowers are owned by private equity sponsors, most of whom are repeat clients. Since the founding of its direct lending business, CBF has deployed over $20 billion in the U.S. middle-market.

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