Centerbridge Partners, LP is an investment management firm with more than $24 billion in assets under management (AUM). It manages a number of hedge funds and currently employs 101 advisors.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore only accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
Centerbridge Partners Background
Centerbridge partners, LP is a Delaware limited partnership that began in 2006 with an office in New York City. Jeffrey H. Aronson controls Centerbridge Partners Holdings, LLC - which is the general partner of Centerbridge Partners, LP - and thus ultimately controls the firm.
Centerbridge has discretionary authority to manage and provide advisory services to private pooled investment vehicles. Additionally, the firm has an affiliate, Centerbridge partners Europe LLP, that is authorized and regulated by the Financial Conduct Authority of the United Kingdom and that serves as sub-advisor of the funds. The funds include: Credit Partners Funds, Special Credit Funds, Capital Partners Funds, Real Estate Fund, Co-Investment Vehicles and other vehicles.
The firm's investment decisions and advice with regards to each fund are subject to each fund's investment objectives and guidelines, not customized to any advisor in particular.
Centerbridge Partners Investment Philosophy
The firm has various methods of analysis and investment strategies for each fund.
The Credit Funds use a multifaceted analytical approach to private credit investing. It seeks to minimize downside risk and protect principal by performing intensive research and actively monitoring the risk of each investment.
The Capital Partners Funds use what is called an all-weather investment strategy. The firm is focused on making investments that are attractively priced relative to their intrinsic value.
The Real Estate Funds build on the firm's historical approach to real estate investing by seeking investments where the firm believes it has the opportunity to create or capture value across properties, companies and loans and securities.
Of course, all current and potential clients should be aware that no investment strategy can guarantee against risk of loss.
Largest Hedge Funds Managed by Centerbridge Partners
Centerbridge Capital Partners III, LP
- AUM: $9,527,747,863
- Minimum: $10 million
- Beneficial Owners: 324
Centerbridge Special Credit Partners III-Flex, LP
- AUM: $3,900,674,361
- Minimum: $7 million
- Beneficial Owners: 97
Centerbridge Credit Partners Master, LP
- AUM: $3,370,794,700
- Minimum: $0
- Beneficial Owners: 528
Centerbridge Captial Partners IV, LP
- AUM: $1,960,207,329
- Minimum: $10 million
- Beneficial Owners: 122
Centerbridge Credit Partners TE, LP
- AUM: $1,457,324,440
- Minimum: $10 million
- Beneficial Owners: 137
Fees at Centerbridge Partners
Each fund's offering documents will provide full details of fees, but particular fund fees are as follows:
For the Credit Partners Funds, generally these funds pay the firm of 1.50% per year based on AUM and a performance-based or incentive allocation fee equal to 20% of net capital appreciation per year.
For the Special Credit Funds, Capital Partners Funds and Real Estate Funds, generally, the funds pay the firm a management fee based on AUM. This fee is 1.50% per year, and then after certain other parameters, 1.25% per year. Additionally, the firm is entitled to receive 20% of the profits from these funds based on carried interest.
Beyond this, other additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential and existing clients read the offering documents carefully and reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors. Such investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
Within the past 10 years, Centerbridge Partners has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of Centerbridge Partners
If you are an accredited investor and wish to become a client of Centerbridge Partners, you can visit the firm's website or call (212) 672-5000.
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