Cerberus SPV Attracted Customers

An emergency special-purpose vehicle set up in the 2009 crisis to contain assets considered toxic at the time has had quite a turnaround. What was seen as a last-ditch measure has apparently become a desirable investment, at least for certain clients.

Special-purpose vehicles became suspect in the crisis. But years later some investors bought the Cerberus SPV in addition to the distressed securities fund that the assets were originally in. They are content to hold the investments, which still cannot be redeemed but are being slowly unwound at the discretion of Cerberus managers.

The SPV started making money in 2010 and continues to bring high returns.  Anyone who bought it at a discount made a great trade, says an investor.


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