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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...