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In Austria, the hedge fund Cerberus is known as the company that the former union bank BAWAG bought and rehabilitated after its bankruptcy. Cerberus will also bring in one of the largest European banks, Deutsche Bank (DB). According to the Wall Street Journal ("WSJ"), DB has been hiring Cerberus for three years as a consultant.
Cerberus is also one of the major shareholders of the bank. Cerberus President Matt Zames, former CEO of JP Morgan, will lead the consulting team. For Cerberus, it is not uncommon to advise companies in which the hedge fund itself owns shares. However, they are the sole shareholder of the DB, which advises them.
Cerberus holds about three percent of the DB. It is expected that the hedge fund will not buy or sell DB shares during its consulting business, as the advisory team will likely receive inside information about the bank.
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