"The valuations of a lot of financial institutions have them oversold, undervalued," Cerberus chairman and former Treasury Secretary John Snow said in an interview at an investment conference in Beijing, Reuters reports. "For investors who don't have short-term liquidity requirements, who can wait a while, there will be significant returns."
Cerberus began as a vulture debt investment firm and later moved into private equity, focusing on distressed and turnaround situations like Chrysler LLC, the carmaker Cerberus is currently trying to revive.
While other private equity firms such as Apollo Management LP, Blackstone Group LP and TPG Capital have bought up leveraged debt, Snow said that Cerberus had been cautious in that area. "Cerberus has highly trained, experienced people in that world, and we haven't rushed in yet," Reuters quotes Snow as saying. -- John E. Morris
See Dealwatch: Chrysler
Cerberus Capital Management LP is launching a new fund to invest in assets outside the U.S. whose prices have been knocked down by the credit crisis, Reuters reported Friday, June 13.
