operations, selling most of its New York-based investment banking business to Oppenheimer Holdings Inc. ``We've been very clear that we've been looking to de-risk the bank, and I think this a pretty high profile example of finding a way to do that,'' Chief Administrative Officer Ron Lalonde said in a telephone interview.Ĭhief Executive Officer Gerald McCaughey has been trying to reduce risk at the bank's U.S. Cerberus will receive cash flow from the notes, while CIBC will retain ownership of the underlying assets, the bank said.ĬIBC, which wrote down its debt investments by about C$7.55 billion ($6.97 billion) since last year, said it's giving away ``potential upside'' in its portfolio to protect against any downside in the real estate market. buyout fund will pay cash for senior notes linked to the residential real estate assets, the Toronto-based bank said today in a statement. real estate portfolio, helping the bank reduce risk.

Resource #2: Canadian Imperial Bank of Commerce, which has taken more writedowns than any Canadian lender during the financial crisis, said Cerberus Capital Management LP will invest $1.05 billion in its U.S. The surge in withdrawals and the creation of the new vehicle may result in investors waiting years to get their money. The fund fell 3 percent to $1.99 billion in the first two months of 2009, according to the letter, a copy of which was obtained by Bloomberg. banker Feinberg in 1992, limited withdrawals from the hedge fund after it lost 16 percent in the year through November. The company may also pay withdrawals in cash within the one-year suspension period.Ĭerberus, founded by former Drexel Burnham Lambert Inc.

Setting up a so-called special purpose vehicle to meet redemption requests from Cerberus Partners LP, which capped withdrawals in December after its assets slumped, is one option being considered by the New York-based firm, according to a March 27 letter to investors.

Resource #1: (4.3.09) Cerberus Capital Management LP, the $27 billion investment firm founded by billionaire Stephen Feinberg, may use stakes in a new vehicle to pay investors seeking withdrawals from a hedge fund after redemptions surged. To review other hedge fund research notes please see our Hedge Fund Tracker Tool. Cerberus Capital Management LP | NotesThe following piece on Cerberus Capital Managment, LP is being published as part of our daily effort to track hedge funds in the industry.

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