|Distressed debt hedge fund manager Avenue Capital Group has announced its plans to launch a new closed-end fund that will diversify its product offerings by selling shares to the public. According to Bloomberg, the Avenue Income Credit Strategies Fund, the firm’s first public vehicle will invest primarily in unsecured high-yield debt, leveraged loans and structured products like the infamous collateralized debt obligations. Randy Takian has been hired from Morgan Stanley, which owns a 15% stake in Avenue Capital, manage the new hedge fund, which is looking to profit from the recent demand for bonds and loans.|
Avenue Capital Group is a hedge fund manager that was founded in 1995 by CEO Marc Lasry and his sister, president Sonia Gardner. Avenue Capital’s primary strategies focus on distressed and undervalued securities, though the firm also has event-driven, Asia long/short and CLO portfolios. The firm currently has approximately $20 billion in assets under management.