Avenue Capital Group

History

Avenue Capital Group was founded in 1995 by siblings Marc Lasry and Sonia Gardner. The two founders had previously founded Amroc Investments in 1989 as a $100 million distressed debt investment fund organized in association with the Robert M. Bass Group.

In 1995, Mr. Lasry and Ms. Gardner started their first Avenue fund, Avenue Investments, with less than $10 million. This onshore fund has grown to $509 million as of December 31, 2012.

In 1997, Mr. Lasry and Ms. Gardner formed their second Avenue fund called Avenue International. This offshore fund attracts U.S. tax-exempt and non-U.S. investors. As of December 31, 2012, Avenue International has $1,461 million in assets under management.

In 2012, The firm was featured in Maneet Ahuja's book, The Alpha Masters: Unlocking the Genius of the World's Top Hedge Funds.

In February, 2016 Marc Lasry explained on CNBC that Avenue Capital was taking advantage of the opportunity to purchase loans from European Banks at a discount. As Lasry said: "Most banks are being forced by the European Central Bank to sell loans and therefore we're able to buy those loans at a great discount. The ECB will likely continue to put pressure on these banks to clean up their balance sheet."

In August 2018, it was announced Avenue Capital has invested €250million ($278 million) in Castlehaven Finance, an Irish construction sector lending platform.

In March 2021, Avenue signed an agreement with Indian economy airline SpiceJet to accommodate the financing, sale & leaseback of fifty new airplanes.

Since its inception in 1995, Avenue has raised 14 private equity style investment funds across its three principal regions (US, Europe and Asia) to invest in distressed securities and real estate:

United States

• 1998 - Avenue Special Situations I - $133 million
• 2001 - Avenue Special Situations II - $520 million
• 2003 - Avenue Special Situations III - $628 million
• 2006 - Avenue Special Situations IV - $1.68 billion
• 2007 - Avenue Real Estate Fund - $166 million
• 2007 - Avenue Special Situations V - $6.0 billion
• 2011 - Avenue Special Situations Fund VI - $1.9 billion
• 2014 - Avenue Energy Opportunities Fund - $1.3 billion

Asia

• 2001 - Avenue Asia Capital Partners - $126 million
• 2001 - Avenue Asia Special Situations II - $275 million
• 2003 - Avenue Asia Special Situations III - $628 million
• 2006 - Avenue Asia Special Situations Fund IV - $3.0 billion

Europe

• 2008 - Avenue Europe Special Situations Fund - €1.5 billion
• 2012 - Avenue Europe Special Situations Fund II – $2.78 billion

Avenue launched its Asian-focused distressed business in 1999. In 2004, Avenue launched its European-focused distressed business with Rich Furst as the senior portfolio manager. While building distressed debt, the European branch of the firm also writes loans for small companies that are unable to obtain financing.

Ownership

In October 2006, Morgan Stanley bought a non-controlling 15% stake in the firm. Marc Lasry and Sonia Gardner invested 100% of the proceeds they received from Morgan Stanley back into the Avenue funds.

Corporate responsibility

In 2014, Avenue Capital Group raised over $68,000 for HerJustice, a New York-based organisation devoted to ending domestic violence. Avenue Capital Group served as a sponsor in 2010 and 2011 and, in July 2012 Avenue's President, Sonia Gardner, hosted a breakfast on inMotion's behalf to encourage other firms to participate. Ms Gardner was again honored in 2014 at the Annual Photography Auction & Benefit for Her Justice.

In January 2016 Marc Lasry participated in "Portfolios with Purpose", in which participants compete on behalf of their favorite charities.

In April 2018 the firm was reported to be launching a $500 million fund focused on impact investing.

References

References

1. "Avenue Capital Group".
2. Griffiths, Tony. (October 6, 2010). "The HFMWeek 50 most influential people in hedge funds". HFMWeek.
3. Ahuja, Maneet. "The Alpha Masters : unlocking the genius of the world's top hedge funds". Wiley.
4. "Avenue Capital Group Strategy".
5. (3 October 2012). "Chelsea Clinton Exited Wall Street to Seek Career With Meaning". Bloomberg.
6. Burton, Katherine. "Paulson's $32 Billion Funds Prompt Too-Big Concerns". Bloomberg News.
7. Ahuja, Maneet. (29 May 2012). "The alpha masters : unlocking the genius of the world's top hedge funds". Wiley.
8. Benner, Katie. "5 hedge fund stars, 5 perspectives". CNN Money.
9. O'Halloran, Barry. "US investor has €2bn to spend on Irish construction". The Irish Times.
10. "SpiceJet signs MoU with Avenue Capital Group". Business Standard.
11. "Avenue Special Situations Fund VI, L.P.". Private Debt Fund Commitment.
12. (4 May 2015). "Exclusive: Avenue Capital raises money for new energy fund - source". Reuters.
13. Willmer, Sabrina. (11 July 2012). "Avenue Said to Raise $2.8 Billion for Distressed Fund". Bloomberg.
14. "Summary of Project Information". World Bank Group.
15. Porter, Kiel. "Avenue Capital starts direct lending in Europe". Financial News.
16. (30 October 2006). "Morgan Stanley Investment Management Forms Strategic Alliance with Avenue Capital Group". Morgan Stanley.
17. "Team Statistics".
18. "Commitment to Justice Awards". inMotion.
19. "Her Justice".
20. (7 January 2016). "Hedge fund manager Marc Lasry: Positive on energy, Clinton and charity".
21. Delevingne, Lawrence. (18 April 2018). "Avenue Capital to launch 'impact' investment fund, source says". [[Reuters]].