Marc Lasry’s Avenue Capital Raises $2.1 Billion for New Fund

Marc Lasry’s Avenue Capital is well on its way to securing the $2.5 billion wanted for its second European distressed debt private equity fund – Europe Special Situations Fund II.

“The firm has raised $2.1 billion for its Europe Special Situations Fund II as of its fourth closing, on Dec. 22,” reports FINAlternatives. “Avenue said the fund will seek to profit from opportunities stemming from Europe’s sovereign debt crisis and from the continent’s banks’ need to shed some of their huge debt holdings.”

Lasry’s new fund will be managed by the firm’s London team and will focus on northern European senior secured debt, equities or other distressed assets. It reportedly has a five-year term, but that could be extended to seven. Investors are required to ante up at least 10 million euro to invest in the fund.

Lasry’s first European distressed fund, Europe Special Situations Fund, was launched four years ago. At that point, it had just 1 billion euro in assets under management. Since then, the fund has had an 18.3% internal rate of return.