Capital Allocators – Inside the Institutional Investment Industry Marc Lasry – Avenues of Opportunity (Capital Allocators, EP.315)
May 15, 2023
In this conversation, Marc Lasry, Chairman and CEO of Avenue Capital Group and part-owner of the Milwaukee Bucks, shares his remarkable journey from Morocco to the world of distressed debt investing. He delves into pivotal moments in Avenue's history, including strategic decisions in tumultuous times. Lasry discusses the shifting landscape of private credit, geographical investment nuances, and the thrill of opportunities in sports and real estate. The talk wraps up with insights on political involvement and how chess and poker inform strategic thinking.
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Investors' Reaction to Bucks
- Lasry's investors initially worried about the Bucks investment being a distraction.
- However, Avenue's continued performance alleviated those concerns.
Perceived vs. Actual Risk
- Perceive risk needs to be considered in investing, especially across geographies.
- Look for opportunities where perceived risk is high, but actual risk is low, like UK and Singapore.
Private Credit Evolution
- Private credit has shifted towards bilateral deals with stronger covenants than public bonds.
- Larger firms utilize leverage, while smaller firms can generate unlevered returns.