Firm News
Schulte Advises Cerberus as it Raises its Sixth Global Multi-Strategy Real Estate Fund
September 11, 2024
Schulte Roth & Zabel represented Cerberus Capital Management L.P. in connection with the formation of, and raising of capital by, Cerberus Institutional Real Estate Partners VI L.P. (including its feeder funds and alternative investment vehicles, collectively, “CIREP VI"), the sixth of the private investment firm’s flagship funds pursuing a global opportunistic real estate strategy.
Schulte has represented Cerberus in connection with all six of its global multi-strategy real estate fund launches. CIREP VI and its predecessor vehicles have collectively raised over $10 billion.
The CIREP VI strategy leverages Cerberus’ integrated investment platform and proprietary operating expertise to invest in direct assets, real estate companies, entities with significant real estate exposure and real estate-related debt, including non-performing loan portfolios.
Cerberus is a global leader in alternative investing with approximately $65 billion in assets under management across complementary real estate, credit and global private equity strategies. Specifically, Cerberus’ real estate platform manages approximately $17.5 billion of real-estate related assets and is a leading investor in real estate and real-estate related assets.
The Schulte team advising Cerberus was led by Investment Management partners Jason Kaplan and Peter Naismith, Tax partners Alan Waldenberg and David Wermuth, Employment and Employment Benefits partner David Cohen, and Finance partner Dan Oshinsky. The team also included Investment Management special counsel Chris Freeman and Finance special counsel Farzaan Ijaz, with Investment Management associates Sean Cunningham, Sarah Heberlig and Milagros Lopez, and Tax associates Lauren Exnicios, Kelsey Gonzalez and Hannah Wells.
Related People
Related Insights
Alerts
On Aug. 19, 2024, the US Securities and Exchange Commission (the “SEC”) charged Obra Capital Management, LLC (“Obra Capital”) with violations of Rule 206(4)-5 under the Investment Advisers Act of 1940, otherwise known as the “Pay-to-Play Rule” (the “Rule”), arising out of a $7,150 campaign contribution made by an individual prior to joining Obra Capital.[1] This campaign contribution was made to a government official in Michigan who had influence over hiring investment advisers for the Michigan Public Employees’ Retirement Fund (the “Michigan Pension Fund”), which was an investor in a fund managed by Obra Capital (the “Obra Fund”). Notably, the Michigan Pension Fund had been an investor in the Obra Fund for several years prior to the hiring of the individual who made the contribution. And perhaps even more notably, this campaign contribution was made several months prior to the individual becoming a “Covered Associate” (as defined by the Rule[2]) of Obra Capital. By virtue of Obra Capital continuing to provide investment advisory services for compensation to the Obra Fund in which the Michigan Pension Fund was invested after hiring the individual, Obra Capital violated the Rule and agreed to pay a $95,000 fine to settle the charges.
Alerts
On Aug. 19, 2024, the US Securities and Exchange Commission (the “SEC”) charged Obra Capital Management, LLC (“Obra Capital”) with violations of Rule 206(4)-5 under the Investment Advisers Act of 1940, otherwise known as the “Pay-to-Play Rule” (the “Rule”), arising out of a $7,150 campaign contribution made by an individual prior to joining Obra Capital.[1] This campaign contribution was made to a government official in Michigan who had influence over hiring investment advisers for the Michigan Public Employees’ Retirement Fund (the “Michigan Pension Fund”), which was an investor in a fund managed by Obra Capital (the “Obra Fund”). Notably, the Michigan Pension Fund had been an investor in the Obra Fund for several years prior to the hiring of the individual who made the contribution. And perhaps even more notably, this campaign contribution was made several months prior to the individual becoming a “Covered Associate” (as defined by the Rule[2]) of Obra Capital. By virtue of Obra Capital continuing to provide investment advisory services for compensation to the Obra Fund in which the Michigan Pension Fund was invested after hiring the individual, Obra Capital violated the Rule and agreed to pay a $95,000 fine to settle the charges.