Cerberus in hedge fund solution

Private equity firm Cerberus is to place investors seeking withdrawals from one of its hedge funds into a special purpose vehicle, a source said yesterday. The firm has sent a letter to clients stating the vehicle will sell assets over time and make cash distributions. For investors remaining in the fund, fees will be reduced. The letter also referred to Cerberus’ high profile investment into carmaker Chrysler, which emerged from bankruptcy in June, stating the firm is to avoid getting involved in matters that attract a lot of publicity in future.