Our Investment Principles
Cerberus’ investment strategies adhere to five inter-related principles: Flexibility, Innovation, Risk Management, Discipline and Transparency. Individually, each principle represents a smart approach to profitable asset identification and management. Collectively, they are a best-in-class strategic approach that allows us to successfully deploy capital and human resources in diverse market conditions across a variety of geographic regions and investment sectors.
We take great pride in our team’s speed and dexterity in applying its expertise to pursue investments in any market cycle, geography or sector. Because we focus on operational outcomes and are not exclusively focused on any one sector or category, our investment teams have the freedom to seize the right opportunities. Investments are made on the basis of their own merit and whether they complement the overall portfolios of the firm’s funds and accounts.
We have led the industry in asset management by seamlessly integrating our investment and operations teams. Drawing on our management experience and financial acumen, our investments reflect a Firm-wide fluency in both complex financial strategies and operational requirements and execution.
We are deeply committed to protecting investors through comprehensive risk mitigation. Our business model is rooted in vigorous due diligence, strict compliance and the application of efficient, creative and customized deal structuring solutions. Cerberus-managed funds make conservative use of asset-level leverage and are diversified to avoid concentration in single sectors or geographies. Investments undergo rigorous valuation analysis and are constantly monitored by our operations and investment professionals, and an independent valuation team.
Cerberus is a steadfast deep-value investor; we are rigorously disciplined about where and how we invest. Our investments do not rely on macroeconomic improvement or industry multiple expansion as cornerstone investment principles. We grow our portfolio based typically on rigorous analyses of actual value and conservative projections of the opportunity for value creation through operational efficiencies, rather than on arbitrary growth theses. Most importantly, we invest where we can leverage our operational and financial experience to achieve the greatest impact.
We demand a culture of strong corporate governance and an unwavering commitment to financial and operational transparency and best practices. We have been a Securities and Exchange Commission (SEC) registered investment adviser since January 2010. The fees that we charge our investors are clearly disclosed and are structured to align its interests with its investors’ and encourage strong performance. We do not typically charge extraordinary deal, financing, monitoring, structuring or board fees, and when such fees are charged, they are typically rebated to our investors.