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US buyout shop Cerberus Capital Management is close to shutting its Hong Kong office as it struggles to cut costs in worsening global economic climate, reports Financial Times. The company had opened its offices in Hong Kong and Beijing in 2006 in order to increase the deal flow from the region. Cerberus had expanded its presence in the region after it hired former Treasury Secretary John Snow as its chairman.

Cerberus has been having its share of troubles at home in US also. The firm has announced to cut 10% of its 275 staff. Cerberus is also having trouble with automobiles portfolio - Chrysler and auto finance firm GMAC.

Quite a few private equity majors in Asia have rightsized their operations. 3i Group recently shut its Hong Kong and Shanghai offices. Carlyle also sacked seven people from its Asia Leveraged team. TPG has also had restructuring with its Moscow office chief Stephen Peel appointed as new Asia head.

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