Cerberus Business Finance closes Fund IV with $2.4B of equity commitments

Cerberus Business Finance LLC has held a final close on its latest flagship fund, Cerberus Levered Loan Opportunities Fund IV, with $2.4 billion of equity commitments, the company said today.

In total, Cerberus Business Finance raised more than $4.4 billion of equity commitments for the middle market direct lending strategy, including in Fund IV and across separately managed accounts. Total capital exceeds $20 billion when including leverage commitments at the fund level, a statement said.

Cerberus Business Finance is the middle market direct lending platform of Cerberus Capital Management LP, targeting midsized U.S. companies across industries.

Currently, Cerberus Business Finance manages more than $16 billion of loans in more than 140 U.S. middle market companies, Cerberus said today. In 2020, the lender completed more than 150 financing transactions totaling roughly $12.7 billion of credit facilities. The majority were transactions backed by private equity firms, in which Cerberus Business Finance acted as lead agent.

Among recently announced debt financing transactions, Cerberus Business Finance provided financing for an acquisition of Astro Shapes LLC by middle market private equity fund Monomoy Capital Partners. Astro Shapes manufactures custom-finished aluminum extrusions.

In January, Cerberus Business Finance said it would provide debt financing backing an acquisition of Woodstock, Ill.-based Blow-Fill-Seal (BFS) Sterile Contract Development and Manufacturing Business (CDMO). Private investment firm SK Capital Partners LP is buying the business from Catalent Pharma Solutions LLC.