Avenue Capital collects $810m for Fund VI

The Marc Lasry-led distressed firm is targeting between $2bn and $3bn for Fund VI, and expects to have more than $1bn by the fall.

Avenue Capital has collected $810 million for a second close on its Special Situations Fund VI, which is targeting between $2 billion and $3 billion, according to a source with knowledge of the situation.

The firm, run by Marc Lasry, expects to hold a third close in the fall with more than $1 billion, the source said. Avenue Capital declined to comment.

Avenue held a first close on Fund VI in late May. Fund V closed on about $6 billion in 2007.

Marc Lasry

The firm, which specialises in distressed debt, has had success attracting existing as well as new limited partners to its roster, including some LPs that have less capital to invest, but are choosing to make larger commitments to fewer managers, the source said.

The firm has been able to stay busy through the downturn buying the debt of private equity-backed companies, and has found itself on the other side of the negotiating table with buyout executives. Last year, Lasry told PEO the firm was able to scoop up senior secured debt in private equity-backed buyouts, some times at astonishingly deep discounts.

“You don’t have to be the loudest at the table. You have to know what you’re doing and you have to make sure you’re in the right security,” Lasry said at the time. “We don’t really care who screams and who doesn’t. Distressed guys don’t mind dealing with that type of behavior because you know you’ll ultimately get everything you need or want.”