Avenue Lays Off 16, Adds Direct-Lending

Oct 5 2012 | 2:08pm ET

Avenue Capital Group is growing and shrinking.

The New York-based hedge fund will lay off 16 people following a review by a consulting firm. Two of the terminated are members of the investment team, while the rest come from its back-office and administrative staff.

But Avenue is also adding a business line, direct lending, and the hedge fund said it was likely to make hires in other areas, Reuters reports.

"Earlier this year we retained a consulting firm to conduct a review that was recently completed," firm founders Marc Lasry and Sonia Gardner wrote. "One outcome of this process is that we are reducing Avenue's global workforce by approximately 6.5%."

The founders also said Avenue would become the latest hedge fund to try to profit from banks' increasing reluctance to offer financing to smaller companies.

"We have recently added a senior member to the Avenue team to establish a direct-lending business and expect to bring on additional professionals as this new business scales up," they wrote.

Lasry and Gardner added that Avenue has bounced back from a double-digit loss last year with "double-digit returns" this year.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…