Catholic Caritas didn't read the fine print.
"Low-profile portfolio; Caritas’s owner, Cerberus, has a history of quiet buyouts that pay off" by Robert Weismann, Globe Staff / November 28, 2010
NEW YORK — This is the nerve center of Cerberus Capital Management, the hard-nosed and secretive private equity firm that earlier this month completed its $895 million buyout of Boston’s Caritas Christi Health Care. But truth be told, it isn’t that intimidating.
There is no statue in the lobby, high above Park Avenue, of Cerberus, the mythological three-headed watchdog guarding the gates of Hades.
Who chooses these "mascots?"
There is no trumpeting of its powerhouse roster of movers and shakers, among them former vice president Dan Quayle, former treasury secretary John W. Snow, and former Home Depot chief executive Robert Nardelli.
Otherwise known as the front men.
And mementos from the company’s one-time ownership of Chrysler Corp. — an ill-fated investment — are conspicuously absent.
So is one deal the article never mentions.
See: Catholic Caritas Makes Deal With the Devil
It's like a mortgage-security sale: just keep rolling those souls over.
Cerberus has always been an unusually guarded and low-profile financial titan. It makes money by buying stakes in businesses, slashing costs and strengthening operations, and taking them public or selling them at a profit. The magazines in its modest lobby track the ups and downs of capital markets. Reporters are about as welcome as Red Sox caps on the streets of the Bronx....
Investors include giant pension funds, mammoth university endowments, and rich people — known in the parlance of the private equity business as “high net worth individuals.’’
Now you know why your pension went bust and why tuition is rising, 'murkn public.
Cerberus manages $23 billion of their capital, a gargantuan sum even by Wall Street standards....
Yes, MONEY F***ING HOWLS in this world.
Though it is best known for a pair of high-profile failures, Chrysler and auto financing firm GMAC, which lost billions for Cerberus and its partners and led to government bailouts, most of the 18-year-old company’s investments have generated healthy profits for investors....
This "deal" keeps getting worse all the time!
While it has slashed jobs and closed operations at many companies in which it’s invested, Cerberus has added jobs and worked with labor unions at others....
And at the bottom of it all?
Reclusive founder and chief executive, Stephen A. Feinberg, a financial whiz kid who cut his teeth at the Drexel Burnham Lambert investment bank....
--more--"
Also see: Killing Caritas
Already dead.
