Tuesday, December 18, 2012
Private Equity Firm Announces Plan To Sell Its Interests In Firearms Firm
Cerebus is a private equity firm with $20 billion under management. It raises capital from pension funds, endowments etc. and it invests the capital in a wide variety of industries. It had acquired the firm that manufactures the weapon used in the Newtown massacre, along with a number of other firearms firms, that were organized in a holding company called the Freedom Group. Cerebus announced that it was in the process of selling its interests in Freedom Group. Cerebus does not believe that it is possible to prevent the misuse of firearms in the Newtown massacre. They made their decision for business reasons. The decision may have been influenced by the announcements by a large pension fund to look into its investments in the firearms industry.