Cerberus fund holds $1.4b final close

Cerberus Capital Management has held a $1.4 billion final close for its third global real estate fund, which is understood to be focusing on distressed opportunities in the United States and Europe, primarily the United Kingdom and Germany. Cerberus Institutional Real Estate Partners III, launched in 2011with a value-added/opportunistic investment strategy, exceeded its fundraising goal of $1 billion and the firm’s previous funds’ size of about $900 million.

The fund’s investments may include companies in non–real estate business lines that have a significant underlying real estate exposure. U.S. investments will primarily be in distressed capital structures of either debt or equity.

Cerberus is one of a number of companies looking at financing opportunities in Europe. Other companies looking to Europe are Starwood Property Trust, The Blackston