Reports

Report: Cerberus Capital Management’s three-headed attack on homeowners, tenants

The private equity giant’s forays into the single-family home rental and mortgage business have harmed renters, prospective homebuyers, and homeowners.

Our new report, “Cerberus Capital Management’s three-headed attack on homeowners, tenants,” looks at private equity and debt firm Cerberus Capital Management’s investments in housing, and their impacts on renters, prospective homebuyers, and homeowners.

Key points

  • Private equity and debt firm Cerberus Capital Management has multiple portfolio companies active in the housing sector.
  • Through its single-family home rental company, FirstKey Homes, Cerberus owns over 20,000 homes across the US.
  • FirstKey has filed to evict residents at high rates in cities such as Memphis, Atlanta, and Phoenix.
  • Despite the COVID-19 pandemic, Cerberus has advanced eviction cases against some residents of its single-family rental homes.
  • In Memphis, TN, FirstKey has been cited dozens of times for code violations at homes it owns.
  • Cerberus’ FirstKey competes with individual homebuyers, making it more difficult for first time homebuyers to purchase homes.
  • In the United Kingdom, Cerberus owns mortgage management company Landmark Mortgages, which has been criticized for keeping homeowners in “mortgage prisons”.

Full report available here.

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