After loosing $4.7 billion from client redemptions, Cerberus Capital Management is looking to raise money for a fund that would invest in distressed debt in hopes of boosting returns for investors, according to Bloomberg.

It is unclear how much the firm intends to raise or when it plans to launch the new fund.

The withdrawals, which came mostly from other managers who needed to repay investors, represented about 60% of the $7.9 billion Cerberus Partners’ and Cerberus International’s funds.

“We are embarrassed and disappointed by our 2008 performance, and we feel a huge obligation to you to turn this around,” Stephen Feinberg, Cerberus’ founder, said in a letter to clients.

Cerberus oversees roughly $24 billion, including more than $19 billion in distressed funds.


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