Cerberus Capital Management, L.P., one of the largest US private equity firms is going to bar investors in two new hedge funds from withdrawing money for three years to avoid a repeat of the large outflows that followed its lossmaking purchases of Chrysler and GMAC. The lock-up will apply to two multibillion-dollar funds to be raised later this year specialising in distressed investments.
Cerberus, named after the one, two, three or fifty-headed, depending on source, dog from Greek and Roman mythology has a history of dabbling with underworld investments, such as the two major car firms and BAWAG, the Austrian bank almost wiped out by fraudulent practices by some of its directors and their associates.
Investors with a smattering of classical education and a knowledge of the labours of Hercules should not be surprised at the lock-up provisions in the new funds. The multi-headed hound with a taste for live meat would happily allow dead souls to pass into Hades, but its main purpose was to prevent any live souls who had crossed the river Styx from ever escaping.
1 comment:
Surely an investor who went round and castrated one of the bankers holding his money would have a defence of provocation?
Post a Comment