Because it coult take years for that special purpose vehicle stake you might be getting to liquidate......
Cerberus Partners LP held $1.99 billion in assets as of Feb. 28 after a
loss of about 3 percent during the first two months of the year,
according to a March 27 letter to investors. The fund said in December
it would partially suspend redemptions after losing 16 percent through
November.....
“The fund’s withdrawal requests have increased substantially since the fund suspended withdrawals, partially because investors wanted to reserve their place in line and partially due to individual investors’ own liquidity needs,” according to the letter, signed by founder Stephen Feinberg. “The increase in withdrawals has significantly delayed the period in which we believe we could reasonably pay withdrawing investors.”
The special purpose vehicle would hold a pro rata share of the cash, securities and assets of the fund, the firm said in the letter. The vehicle “would be managed by the general partner until it is fully liquidated, a process which might take several years.”
“The fund’s withdrawal requests have increased substantially since the fund suspended withdrawals, partially because investors wanted to reserve their place in line and partially due to individual investors’ own liquidity needs,” according to the letter, signed by founder Stephen Feinberg. “The increase in withdrawals has significantly delayed the period in which we believe we could reasonably pay withdrawing investors.”
The special purpose vehicle would hold a pro rata share of the cash, securities and assets of the fund, the firm said in the letter. The vehicle “would be managed by the general partner until it is fully liquidated, a process which might take several years.”
Cerberus Partners May Pay Redemptions Through Special Vehicle - Bloomberg
Comments