Structure; History and Ownership
Avenue Capital Management II, L.P. (CRD #111845) (“Avenue U.S.”), Avenue Europe International
Management, L.P. (CRD #131937) (“Avenue Europe”) and Avenue Asia Capital Management, L.P.
(CRD #113246) (“Avenue Asia”) (each, a “filing adviser” and collectively, the “firm,” “Avenue Capital
Group,” “Avenue,” “Avenue Capital” or “we”) is a group of commonly owned investment advisers with
their principal place of business in New York City. Avenue Capital Group generally provides investment
advisory services to private investment funds (“private funds”) and may provide investment advisory
services to separately managed accounts and registered investment companies (the private funds and any
separately managed accounts and managed registered investment companies, the “funds). In addition to
our offices in New York, we have offices in Silicon Valley, London, Luxembourg, Dublin, Sydney, Hong
Kong, Mumbai, Singapore and Abu Dhabi.
This brochure provides information about: (i) Avenue Capital Group and (ii) general partners or
managing members of funds that are relying on the filing advisers’ registration as investment advisers (in
accordance with the U.S. Securities and Exchange Commission (“SEC”) letter to the American Bar
Association, Subcommittee on Private Investment Entities dated December 8, 2005 (the “2005 SEC
Letter”)), which are listed in Section 7.A. of Schedule D in Part 1A of each filing adviser’s Form ADV.
This brochure also provides information about Avenue Europe’s and Avenue Asia’s respective relying
advisers which are listed in Schedule R of Part 1A of Avenue Europe’s and Avenue Asia’s Form ADV
pursuant to General Instruction No. 5 to Form ADV Part 1A. Each such entity conducts its activities in
accordance with the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and the rules
thereunder, and is subject to the supervision and control of Avenue Capital Group, including being
subject to Avenue Capital Group’s investment adviser compliance policies and procedures.
Avenue U.S. commenced business in 2000 and has been registered as an investment adviser with the SEC
since July 17, 2000. Avenue ME Advisors Ltd, a relying advisor of Avenue U.S., has been granted
Financial Services Permission to Conduct Regulated Activities, Prudential Category 4, by the Financial
Services Regulatory Authority of the Abu Dhabi Global Market, United Arab Emirates, since February
11, 2021. Avenue Europe commenced business in 2004 and has been registered as an investment adviser
with the SEC since July 2, 2004. Avenue Europe Management, LLP, a relying adviser of Avenue Europe,
has been authorized by the U.K. Financial Conduct Authority since 2004. Avenue Asia commenced
business in 2001, and has been registered as an investment adviser with the SEC since July 13, 2001. GL
Advisors Hong Kong Limited, a relying adviser of Avenue Asia, received a Type 9 (asset management)
license with the Securities and Futures Commission of Hong Kong in August 2015 and has been
registered as a Foreign Portfolio Investor with the Securities and Exchange Board of India since April 10,
2019. Avenue Asia Singapore Pte. Ltd., a relying advisor of Avenue Asia, has been issued a Capital
Markets License by the Monetary Authority of Singapore to conduct fund management activities on
November 25, 2020.
Avenue Capital Group, including the general partners and managing members of funds and Avenue
Europe’s and Avenue Asia’s relying advisers is a global alternative investment firm founded in 1995. As
of February 28, 2023, Avenue Capital Group had approximately 186 employees worldwide, including
approximately 65 investment professionals. Avenue Capital Group maintains a well-developed
infrastructure with extensive accounting, operations, legal, business development, risk management,
compliance and information technology teams.
Marc Lasry (Chairman, Chief Executive Officer and Co-Founder) and Sonia Gardner (President,
Managing Partner and Co-Founder) are the Senior Principals of Avenue Capital Group and together
control the general partners of each filing adviser (
i.e., Avenue Capital Management II GenPar, LLC,
Avenue Asia Capital Management GenPar LLC and Avenue Europe International Management GenPar,
LLC). Shawn Foley is a Senior Portfolio Manager and is responsible for Avenue U.S.’s Aviation sub-
strategy. Matt Kimble and Craig Hart are Senior Portfolio Managers and are responsible for Avenue
U.S.’s Energy sub-strategy. Shawn Foley, Matt Kimble and Craig Hart are collectively responsible for
Avenue U.S.’s strategy focusing on investments in portfolio companies headquartered or with principal
places of business in the United States and Canada. Edward Gellert is a consultant to Avenue Capital
Group and is responsible for Avenue U.S.’s Real Estate strategy.
1 William Maier is a Senior Portfolio
Manager and is responsible for Avenue U.S.’s Performing Loans strategy. Patric Lager is a Portfolio
Manager and is responsible for assisting with the direction of Avenue U.S.’s Performing Loans strategy.
Jonathan Ford is a Senior Portfolio Manager and is responsible for Avenue Europe’s investment strategy.
Padraig Moore is a Senior Portfolio Manager and is responsible for assisting with the direction of Avenue
Europe’s investment strategy. Anil Gorthy is a Senior Portfolio Manager and is responsible for Avenue
Asia’s investment strategy. Randal Klein is a Senior Portfolio Manager and is responsible for assisting
with the direction of the investment activities of the firm’s global funds. John Larkin is the Head of
Avenue’s Sustainable Solutions strategy. Sean Coleman is a Senior Portfolio Manager and is responsible
for Avenue’s Sustainable Solutions strategy. Dan Holman, Chad Norman and Tony Pandjiris are Senior
Portfolio Managers and are responsible for Avenue’s Venture Debt strategy. Jonathan Greenbaum is a
Senior Portfolio Manager and is responsible for Avenue’s BI Insurance strategy.
Our primary investment advisory service is to provide discretionary investment advice to funds. In
addition to funds, we may in the future also advise one or more separately managed accounts on a
discretionary basis. The objective and strategy of a managed account may but is not required to be similar
to the investment objective and strategy of a fund managed by Avenue Capital Group.
Avenue Capital Group’s primary focus is investing in credit obligations (public and private), including
without limitation, distressed debt and equity opportunities, other special situations (which includes
private equity opportunities) and high yield investments in the United States, Europe and Asia. The
Senior Principals and the Portfolio Managers of funds managed by Avenue Capital Group have spent
virtually their entire careers in this space.
Avenue Capital Group generally pursues a theme-driven, concentrated investment strategy that is
analytically intensive and relies upon individual issuer, industry and macro research and analysis. To
execute this strategy, Avenue Capital Group has assembled an experienced team of investment
professionals. The depth of experience of these professionals allows for thorough research and analysis of
potential investment opportunities, including issuers with complicated, multi-layered capital structures in
complex and dynamic industries.
1 Mr. Gellert was a Senior Portfolio Manager responsible for Avenue U.S.’s Real Estate strategy until March 16,
2018.
Avenue U.S.
Avenue U.S. advises funds using investment strategies that may include one or more of the following
strategies and sub-strategies:
Private Funds
• Distressed;
o Energy
o Aviation
• Real Estate;
• High Yield;
• Performing Loans;
• Private Transactions (including private credit and equity transactions);
• Sustainable Solutions;
• Venture Debt; and
• BI Insurance.
In addition to Avenue U.S.’s Distressed funds and its Energy and Aviation funds, a portion of the assets
Avenue U.S. manages may be invested by its Real Estate funds, High Yield funds, Performing Loans
funds, Private Transactions funds, Sustainable Solutions funds, Venture Debt
funds and/or BI Insurance
funds. Avenue U.S.’s Distressed, Real Estate, High Yield, Performing Loans, Sustainable Solutions,
Venture Debt and BI Insurance strategies include private funds. Avenue U.S.’s Private Transactions
strategy may include private funds and other pooled investment vehicles with private transactions as part
or all of their investment mandate. Thus, Avenue U.S. provides investment advice to private funds.
Avenue Europe
Avenue Europe advises funds using investment strategies that may include one or more of the following
strategies and sub-strategies:
• Distressed;
• Direct Lending;
• High Yield; and
• Private Transactions (including private credit and equity transactions).
Avenue Europe’s primary investment strategy is a Distressed strategy pursuant to which Avenue Europe
invests in distressed debt and other special situations, which includes private equity opportunities.
Avenue Europe considers European companies to be companies that are headquartered or have a principal
place of business in Europe, whose country of risk is in Europe (
i.e., the primary source of revenue risk as
determined by Avenue Europe), or that have issued securities or other financial instruments denominated
in a European currency.
In addition to Avenue Europe’s Distressed funds, a portion of the assets may be invested by Avenue
Europe’s Private Transactions funds. Avenue Europe’s Private Transactions funds include private funds
and other pooled investment vehicles with private transactions as part or all of their investment mandate.
Avenue Asia
Avenue Asia’s Distressed strategy generally focuses on:
• companies undergoing a restructuring, reorganization or bankruptcy;
• companies that are operationally sound, but financially troubled due to overleveraged balance
sheets, inadequate capitalization or limited access to capital;
• companies that are undervalued because of discrete extraordinary events or economic
conditions; and
• companies being sold for less than their intrinsic value.
Avenue Asia focuses on special situations investment opportunities in the Asian region, which includes
Australia and New Zealand. Avenue Asia’s investment professionals seek undervalued securities or
assets being sold at a discount by non-economic sellers, including single assets or concentrated pools of
assets. Avenue Asia leverages its network of local investment, legal, and accounting professionals to
source and execute investment opportunities and engage in active portfolio management. In addition to
seeking special situations Avenue Asia’s Distressed strategy focuses on investments in debt and equity
across industries, sectors and geography.
***
Prospective investors in any fund are advised to review the private fund’s confidential offering
memorandum for a more in-depth description of that fund’s investment strategy and objectives, types of
assets to be invested in, investment restrictions (if any), and related risk factors.
Some of the private funds we advise are feeder funds to or parallel funds of other funds. In some cases,
such as certain of the Distressed funds, we advise successor funds to earlier funds that have concluded
their investment period.
A list of the funds we manage can be found below at Item 10.
Types of Advisory Services
As described above, Avenue Capital Group generally provides advisory services to private investment
funds, and we may provide advisory services to separately managed accounts for institutional investors.
Neither Avenue Capital Group nor any of our affiliates is acting as an investment adviser or otherwise
making any recommendation as to an investor’s decision to invest in the funds. The advisory services we
provide to investment funds are provided on a discretionary basis. The advisory services we provide to
managed accounts may be discretionary or non-discretionary.
Avenue Capital Group may manage one or more private funds (
i.e., pooled investment vehicles) in which
Benefit Plan Investors
2 would have aggregate holdings of 25% or more of the value of one or more
classes of such funds’ outstanding equity interests, resulting in the assets of the respective funds being
treated as “plan assets” under ERISA. The applicable adviser would be considered a fiduciary of “ERISA
plans” investing in the private fund. The applicable adviser would manage the operations and
transactions of a private fund that is deemed to hold “plan assets” in a manner that complies with the
applicable provisions of the prohibited transaction rules of ERISA and Section 4975 of the Code. The
applicable adviser intends to rely on the applicable provisions of the relief available under various
exemptions issued by the U.S. Department of Labor, including the relief available under prohibited
transaction exemption 84-14, as amended, for transactions negotiated by a “qualified professional asset
manager,” when such operations or transactions would otherwise constitute prohibited transactions.
Pursuant to an exemption under U.S. Commodity Futures Trading Commission (“CFTC”) Rule
4.13(a)(3), none of Avenue Capital Group’s investment advisers, general partners or other affiliates are
required to register, and are not registered, with the CFTC as commodity pool operators. None of Avenue
Capital Group’s investment advisers, general partners or other affiliates are required to register with the
CFTC as a commodity trading advisors.
The investment strategies we employ are described below at Item 8. The description of each investment
strategy, including restrictions on permissible investments, investment guidelines and applicable risk
factors, is not intended to apply to any particular fund (unless explicitly stated otherwise), which could
employ one or more of Avenue Capital Group’s investment strategies.
Assets Under Management
As of December 31, 2022, Avenue Capital Group collectively managed approximately $13,278,874,377
of client assets, all on a discretionary basis.
3
2 As defined under Section 3(42) of the U.S. Employee Retirement Income Security Act of 1974 (“ERISA”),
“Benefit Plan Investors” include: (i) employee benefit plans (such as defined benefit plans or profit-sharing plans)
within the meaning of Section 3(3) of ERISA and subject to Title I of ERISA (“ERISA plan”); (ii) individual
retirement accounts and other retirement plans and accounts subject to Section 4975 of the Internal Revenue Code of
1986 (the “Code”); and (iii) any other entity whose underlying assets include “plan assets” by reason of any Benefit
Plan Investor’s investment in such entity. Fiduciaries of ERISA Plans or other plans or individual retirement
accounts subject to Section 4975 of the Code are subject to fiduciary responsibility and prohibited transaction issues
which may arise with respect to a private fund’s operations and transactions if at any time the underlying assets of
such fund constitute “plan assets” of such plans or individual retirement accounts under U.S. Department of Labor
Regulations Section 2510.3-101, as modified by Section 3(42) of ERISA. These regulations provide that when such
a plan or individual retirement account invests in an equity interest in an entity (such as a private fund), its assets
will include both the equity interest and the undivided interest in each of the underlying assets of the entity, unless
an exception set forth in the regulations is applicable. The regulations provide an exception for an entity if,
immediately after the most recent acquisition or disposition of any equity interest in the entity, Benefit Plan
Investors hold less than 25% of the value of each class of equity interest in the entity.
3 Except as otherwise provided below, as of December 31, 2022: (a) Avenue U.S. managed approximately
$7,225,578,756 of client assets; (b) Avenue Europe managed approximately $4,683,809,329 of client assets and (c)
Avenue Asia managed approximately $1,369,486,292 of client assets, in each case on a discretionary basis of client
assets. These amounts represent the regulatory assets under management of each respective adviser.