Avenue Capital Plans to Raise $600 Million for Impact Fund

(Bloomberg) -- Avenue Capital Group plans to raise as much as $600 million for its first private debt impact investment fund, according to a person with knowledge of the matter.

The fund is the first foray by the New York-based investment firm led by billionaire Marc Lasry into the growing climate finance space. Avenue Capital completed its first close on the fund of $200 million in the past week, according to the person who asked not to be identified because the information is private.

Few funds in the impact space have focused solely on private debt, which makes the Avenue Capital offering unique in a space largely dominated by venture capital and private equity. Avenue Capital, however, is best known for distressed debt.

The impact fund, which may start deploying capital later this year, expects to make credit investments in North American private, middle-market companies that are growing. It will focus on themes around sustainable infrastructure, resource efficiency, agriculture, water, climate mitigation, clean energy and safety, according to the firm’s website.

An Avenue Capital spokesman declined to comment.

Avenue Capital managed about $10.4 billion in assets at the end of December, according to its website.

To contact Bloomberg News staff for this story: Emily Chasan in New York at echasan1@bloomberg.net

To contact the editor responsible for this story: Tim Quinson at tquinson@bloomberg.net

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