Private-equity and hedge funds are accumulating shipping debt at the fastest pace since they began buying the risky loans from banks two years ago, raising prospects of the firms eventually owning the vessels.
Avenue Capital Group LLC, the distressed-debt firm with about $12.6 billion of assets under management, invested “a couple hundred million dollars” in the shipping industry, according to co-founder and chief executive officer Marc Lasry.
Avenue Capital Group founder Marc Lasry and Bruce Grossman, his senior manager of investment, were on a private jet returning to New York from Harrisburg, Pennsylvania, in 2005 when they felt the plane’s cabin suddenly heat up.
Avenue Capital Group LLC, the distressed-debt firm co-founded by Marc Lasry, is starting to talk to prospective investors about a fund that will make senior loans to mid-sized companies in Europe, according to three people familiar with the matter.
Marc Lasry, founder of Avenue Capital Group LLC, is heading into the end of the year with more cash than his firm usually holds, to take advantage of a possible market selloff should U.S. lawmakers fail to agree on steps to reduce the country’s debt.
Blackstone Group LP raised more than $4 billion in 2009 to buy European property assets anticipating that cash-strapped banks would be forced to sell as the region’s debt crisis worsened. Almost all of it sat idle for two years.