Avenue Will Buy, Not Sell, Leveraged Loan Biz.

May 20 2009 | 1:03pm ET

Avenue Capital Management will not sell its leveraged loan and collateralized loan obligations business, and instead will seek to acquire one or more other high-yield fund shops.

The New York hedge fund, which manages some $2.8 billion in CLOs, decided against dumping the unit as the CLO market has recovered in recent months, Bloomberg News reports. The $16.5 billion firm has ended talks with potential buyers, and has become a serious potential buyer itself. According to Bloomberg, the firm is stepping up its efforts to buy other high-yield loan funds.

While the firm will not part ways with its CLO unit, it has parted ways with its top manager. Richard D’Addario left Avenue last month. According to Bloomberg, his departure had nothing to do with the firm’s plan to sell the business.

Should Avenue find a CLO shop to buy, it would put that firm’s management in charge of its six CLOs.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of