In an effort to placate unhappy investors, Cerberus Capital Management is establishing a special purpose vehicle to meet redemption requests for its Cerberus Partners fund. Nonetheless, with redemption requests continuing to pour in, the firm said it could take years before it is able to repay investors in full.
A Cerberus spokesman declined to comment.
At the end of 2008, Cerberus was hit with redemption requests totaling 16.5% of total assets in Cerberus Partners, which saw its performance drop 16% through November. In an effort to prevent a mass exodus, the $27 billion firm, which was founded by