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Centerbridge Partners Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

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.

Investing Tips

  • Whether you are an accredited or sophisticated investor or not, it never hurts to consult a professional to make sure you're doing everything you can to manage your finances so that they can work for you. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with financial advisors in just five minutes. If you're ready to connect with local advisors, get started now
  • It's never too early - or too late, for that matter - to start investing. In addition to connecting you with expert advisors, SmartAsset also has various tools to help you get a snapshot of the numbers right now. Take a look at our free investment calculator for a sense of how much a particular investment might be worth as well as its growth over time.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research