Avenue Capital reaches $450m for latest Asia fund – exclusive

The New York-headquartered manager has held a final closing after a decade-long break from the Asian fundraising market.

Avenue Capital Group, a New York-headquartered alternative investment firm, has reached final closing for its Avenue Asia Special Situations Fund V at $450 million, according to a source familiar with the matter.

PDI previously reported that Fund V had raised over $131.5 million in Q1, as shown in an SEC filing recorded on February 26.

A spokesperson from the firm could not be reached for comment on the fundraising by publication time.

The firm came back to the Asian market in 2016 after a decade-long break. The 2006-vintage fund, Fund IV, gathered $2.7 billion. University of Texas Investment Management Co. (UTIMCO) disclosed its commitment of $25.1 million to Fund IV. Other institutions committed to the fund include W.K. Kellogg Foundation, The Allstate Corporation, and Alfred P. Sloan Foundation.

Avenue Group’s Asian strategy includes lending to companies that have limited access to bank loans. The strategy also targets the acquisition of non-core assets from [multi-national] companies that have a presence in the region.

Among other special situations funds with similar investment strategies, Bain Capital Special Situations Asia held its final closing at $1 billion as of end-May, according to PDI data.

Avenue Capital Group manages $9.6 billion, led by billionaire Marc Lasry and his sister Sonia Gardner, according to the firm’s public disclosure as of 30 June. Yifeng Wang is the country manager for China and George Wang oversees the firm’s business across Australia and New Zealand.