Private-equity firm Cerberus Capital Management LP, the owner of a company that makes a gun used in last week’s shooting, said early Tuesday that it would seek to sell Freedom Group. The move comes shortly after it faced pressure from former New York Gov. Eliot Spitzer as well as the California State Teachers’ Retirement System, which said it is reviewing a $500 million investment commitment to the New York-based private-equity firm.
“We have determined to immediately engage in a formal process to sell our investment in Freedom Group. … We believe that this decision allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate that is more properly pursued by those with the formal charter and public responsibility to do so,” Cerberus said in a statement.
Cerberus acquired a number of gun-and-ammunition makers, including rifle maker Bushmaster Firearms International, the maker of the rifle authorities say was used in Friday’s shooting.
Among the other firearm companies Cerberus and its affiliates have bought is Remington Arms Co., the country’s largest and oldest maker of rifles and shotguns. Cerberus consolidated its gun holdings in a company started in 2007 called Freedom Group. Freedom Group’s legal name was changed in October to Remington Outdoor Co. though the company still uses the Freedom Group name to do business.
Freedom Group includes quite a few companies:
DPMS / Panther Arms
Much of this is because, as reported in The Street:
The move comes just a day after the California State Teachers’ Retirement System said it would review its investment in Cerberus, given the private equity firm’s controversial holding of the gun maker.
“Our investment branch is examining the Cerberus investment to determine how best to move forward given the tragic events of last Friday in Newtown, Connecticut,” Ridardo Duran, a CalSTRS spokesperson said in an e-mailed statement obtained by Bloomberg News. The public pension fund has $154.8 billion in assets as of Oct. 31, of which $751 million are overseen by Cerberus, the statement added.
The decades-long march through education by terrorist leftists like Bill Ayers is paying off. Uncertainty in the market is no small thing, either – it’s also an excellent example of how threat of regulation can instantly crush a business.