Looking back on Avenue’s falling assets and Soros’ summer soap opera

By Rob Copeland

Tue Sep 4, 2012

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AR also revisits Conatus, the first Lone Pine spinout.

One year ago
»» Assets at Marc Lasry’s Avenue Capital Group dipped to $12.3 billion by midyear 2011, from $18 billion just six months earlier, as the firm had been liquidating a private equity vehicle launched in 2007.

The firm’s capital base has held steady since then, sliding to $12.2 billion at the start of 2012 and landing at $12.4 billion in the upcoming Billion Dollar Club survey for midyear. Its figure next year is likely be higher; Avenue raised nearly $3 billion this summer for a new European distressed fund. Lasry said in July that he was buying up debt on the Continent because the risk premium was so high.

Todd Fogarty, an external spokesperson for the firm, declined to comment

See also: Best ideas for credit investing from Avenue Avenue’s fund of funds dips

»» George Soros was slapped with a $50 million lawsuit by his Brazilian soap opera star ex girlfriend, Adriana Ferreyr, just a month after announcing he would close his hedge fund to outside investors and run it as a family office. She claimed Soros owed her an apartment he had promised to buy her, and that his failure to do so amounted to intentional infliction of emotional distress. Soros has denied the claims, and the lawsuit is still reportedly ongoing.

Just last month the 82-year-old became engaged to a 40-year-old yoga instructor, whom Ferreyr had alleged Soros began seeing during their relationship, and whom she said Soros described as his "nurse."

Soros has maintained his enormous generosity despite his apparent unwillingness to add real-estate-seeking ex-girlfriends to the rolls of his charitable empire. He recently slipped three spots to fourth place in the annual Chronicle of Philanthropy rankings of the nation’s top charitable donors, though his annual giving stayed almost the same at $335 million. One area he has pulled back from is political donations, as this election cycle the longtime Democrat has given only about 20% of what he did in 2008 to so-called super PACs supporting President Barack Obama, the New York Post reported recently.

See also: Soros leads hedge funds on Forbes list of richest Americans Former Soros CIO preps global macro fund

Five years ago
»» Steve Mandel’s Lone Pine Capital Management spawned its first offspring: David Stemerman’s Conatus Capital Management.

Stemerman launched his global long/short equity fund in January 2008 with $2.3 billion, making it the second-biggest startup of the first half of that year. Mandel took a small equity stake in the firm. Assets rose as high as $3.5 billion one year ago, but have fallen back to $2.3 billion as of July 1 this year.

Another Lone Pine émigré, Matt Iorio, planned a launch at around the same time. He got off the ground three months earlier than Stemerman in September 2008, but had amassed only $334.6 million as of December 31, 2011, according to a regulatory filing.

Glenn Sapadin, Conatus’ director of investor relations, did not return a call seeking comment.

ISSN: 2151-1845 / CDC10004H

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