Avenue Capital Group, a global investment firm focused primarily on opportunistic credit and other special situations investments across the US, Europe and Asis, is planning to a launch a new fund to make environmental impact private credit investments, according to a report by Reuters.
The report cites an unnamed source familiar with the matter as revealing that Avenue, which has $12.5bn in assets under management, has begun talks with investors to raise between $600m and $800m for the new fund.
The new vehicle, which will look to finance middle-market companies in sustainability sectors such as food, water, waste and clean energy, will be Avenue’s second environmental impact private credit fund following a $500m strategy launched in 2020 with the New York State Common Retirement Fund as one of its main investors.
The new fund will reportedly target an annual return around the mid-teens per year, by making loans of between $20m and $75m.
