Avenue Capital Said to Target $400M for New Credit Opportunity Fund

Jul 22 2016 | 10:31pm ET

Avenue Capital Group is planning the launch of a new credit opportunity fund.

The $11.3 billion alternative asset firm is aiming to raise $400 million for the new vehicle, according to a Reuters article citing unnamed sources. It will be named the Avenue Credit Opportunity Fund and will invest in first- and second-lien collateralized term loans as well as high-yield bonds primarily in the U.S. but also in Europe. 

The new fund will be managed by portfolio managers William Maier and Patric Lager, the article said. They are recent additions to Avenue, with Maier joining this month after a 26-year stint as an executive at Natixis and Lager coming in June from Saudi Arabian investment bank FALCOM Financial Services. Prior to his most recent position, Lager was also with Natixis for around 17 years, Reuters said. 

New York-based Avenue Capital was founded in 1995 by Lasry and Gardner, who are siblings. Morgan Stanley bought a stake in the firm in 2006 for about $300 million, and former first daughter Chelsea Clinton was an associate there from 2006 to 2009. The firm’s inaugural hedge fund, Avenue Investments, was shuttered in November of last year as the company moves toward less liquid private equity-style investment vehicles.

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