Avenue Capital Group

Avenue Capital Group
Limited liability company
Industry Private Equity, Distressed securities
Founded 1995
Founder Marc Lasry, Sonia Gardner
Headquarters 399 Park Avenue
New York City, New York, U.S.
Products Private equity funds, Hedge funds
Total assets $14.1 billion [1]
Number of employees
 220
Website www.avenuecapital.com

Avenue Capital Group is a global investment firm focusing on distressed securities[2] and private equity with regional teams focusing on opportunities in the United States, Europe and Asia. The firm operates as both a private equity firm and as a hedge fund. Avenue’s core strategy is focused on distressed debt and equity securities although the firm also manages investment funds that focus on long-short opportunities, real estate, and collateralized debt obligations. The firm manages assets valued at approximately $12 billion.[3] The firm was founded by former professionals of Amroc Investments, an affiliate of the Robert M. Bass Group.

The firm is headquartered in New York City, with offices in London, Luxembourg, Munich, Beijing, Hong Kong, New Delhi and Singapore. The firm has established an institutional-quality infrastructure in terms of accounting, compliance legal, investor relations, and information technology capabilities.[4] Avenue has approximately 220 employees across its 8 offices worldwide.

Avenue’s investment professionals seek "good companies with bad balance sheets" — firms with sustainable businesses and positive cash flow but whose financial situation is distressed. The investment team uses Avenue’s top-down/bottom-up approach to find undervalued opportunities and typically seeks to make non-operational control investments in troubled businesses. This provides the strategy maximum trading flexibility and allows Avenue’s investment professionals to focus on pre-investment research and analysis rather than post-investment operating issues.[5]

From 2006 to 2009, Chelsea Clinton, daughter of former President of the United States Bill Clinton and former Secretary of State Hillary Clinton, worked as an associate at Avenue Capital Group LLC.[6]

Avenue Capital Group's former General Partner was Steve Shenfeld before joining Ted Virtue's MidOcean Partners.

Bloomberg reported that as of February 28, 2010, Avenue Capital Group is the 13th largest hedge fund in the world.[7]

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.[8]

In 2012, The firm was featured in Maneet Ahuja’s book, The Alpha Masters: Unlocking the Genius of the World’s Top Hedge Funds.[9]

Since its inception in 1995, Avenue has raised 13 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[10]

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[11]

Avenue launched its Asian-focused distressed business in 1999.[12] 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.[13]

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.[14]

Corporate responsibility

In 2014, Avenue Capital Group raised over $68,000 for HerJustice, a New York-based organisation devoted to ending domestic violence.[15] 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.[16] Ms Gardner was again honored in 2014 at the Annual Photography Auction & Benefit for Her Justice.[17]

References

  1. ↑ https://www.avenuecapital.com/Firm.aspx
  2. ↑ Griffiths, Tony (October 6, 2010). "The HFMWeek 50 most influential people in hedge funds". HFMWeek. Retrieved 5 August 2011.
  3. ↑ Alden, William (February 4, 2013). "Avenue Capital Prepares New Fund for Europe". New York Times. Retrieved 7 February 2013.
  4. ↑ Ahuja, Maneet. The Alpha Masters : unlocking the genius of the world's top hedge funds. Hoboken, N.J: Wiley. p. 84. ISBN 1118167597.
  5. ↑ "Avenue Capital Group Strategy". Retrieved 21 February 2013.
  6. ↑ "Chelsea Clinton Exited Wall Street to Seek Career With Meaning". Bloomberg. 3 October 2012. Retrieved 24 May 2014. “Intellectually, I loved my job, but I didn’t get any meaning from it,” says Clinton, 32, who worked from 2006 to 2009 as an associate at Avenue Capital Group LLC, a New York- based hedge fund firm.
  7. ↑ Burton, Katherine. "Paulson’s $32 Billion Funds Prompt Too-Big Concerns". Bloomberg News. Retrieved 29 March 2010.
  8. ↑ Ahuja, Maneet. The alpha masters : unlocking the genius of the world's top hedge funds. Hoboken, N.J.: Wiley. p. 83. ISBN 1118065522.
  9. ↑ Benner, Katie. "5 hedge fund stars, 5 perspectives". CNN Money. Retrieved 12 February 2013.
  10. ↑ "Avenue Special Situations Fund VI, L.P.". Private Debt Fund Commitment. Retrieved 21 February 2013.
  11. ↑ Willmer, Sabrina. "Avenue Said to Raise $2.8 Billion for Distressed Fund". Bloomberg. Retrieved 21 February 2013.
  12. ↑ "Summary of Project Information". International Finance Corporation. World Bank Group.
  13. ↑ Porter, Kiel. "Avenue Capital starts direct lending in Europe". Financial News. Retrieved 21 February 2013.
  14. ↑ "Morgan Stanley Investment Management Forms Strategic Alliance with Avenue Capital Group". Morgan Stanley. 30 October 2006. Retrieved 8 February 2013.
  15. ↑ http://storybystory.kintera.org/faf/search/searchTeam.asp?ievent=1110871&lis=1
  16. ↑ "Commitment to Justice Awards". inMotion. Retrieved 7 February 2013.
  17. ↑ http://www.herjustice.org/content/view/446/645/

External links