The meaning behind Cerberus Capital Management’s name has been seen as both disconcerting and amusing in the past. Now, we are getting some fresh insight on exactly how the firm got such a title.

For poetry and history buffs alike, Cerberus refers to the mythical, three-headed dog with a serpent’s tale and a mane of snakes that guards the gates of Hell, preventing ghosts from leaving. In an age when private equity firms, formerly known as leveraged buyout shops, are very sensitive about image, the picture that Cerberus conjurs up isn’t exactly puppy (or politician) friendly. The Wall Street Journal’s deal blog argues here that Cerberus should just drop the moniker. Amid all the Hades references, the firm has largely been mum on the whole name thing, to nobody’s surprise. Cerberus is about as private as any private equity firm, and just recently put up a bare bones website.

But mum no more.

Thanks to Willam Safire’s On Language column in this weekend’s New York Times magazine, we now know how the firm got its title. The column analyzes Cerberus and its literary roots but also quotes Tim Price, a Cerberus managing director, on the background to the naming. And it isn’t exactly based on deep thinking.

I suppose I could give you the official spin, says Tim Price, a managing director of the firm formed 15 years ago, that Cerberus was the name of the fine guard dog that kept people from the underworld who didnt belong there and thats the business were in now. And the dog always had one eye open. But you wouldnt buy that.

But Price decides to lay-out the real story.

There were six guys when we started, and the name sounded pretty cool, but nobody really researched it. Now, frankly, were torn. Its a terrible brand name, but we have a ton of equity in it. What to do?

Safire says keep Cerberus. Indeed with $16.5 billion under management and a portfolio with $60 billion in annual revenues, it’d be tough to shake the name at this point. (Image credit:Alison Smith, www.amosink.com)