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Hedge-fund billionaire Marc Lasry might want to brush up on his diplomatic skills before heading overseas.
Lasry, the CEO and co-founder of Avenue Capital, is on his way to getting a plum assignment as the US ambassador to France as a reward for his many years as a big Democratic fundraiser.
But the Moroccan-born, French-speaking American could encounter some uncomfortable moments when he lands in Paris, given his views on the land of fine wine, crusty baguettes — and European socialism.
“We don’t invest in France,” he said at a New York hedge-fund conference sponsored by French bank BNP in June 2010, even apologizing to his hosts as he made the comment.
Lasry, who is a bankruptcy lawyer by training, loves to chide other countries for their creditor-unfriendly ways. His $11.7 billion distressed debt fund buys up beaten-down credits of companies headed towards bankruptcy, with the payout determined by their ranking in the process.
That can be dicey in countries like France, he explained at the BNP conference, as “the legal system is very much tilted towards helping unions and workers.” As a result, he said, “you might find your claim disallowed.”
About $3.8 billion, or a third, of Avenue’s assets are invested in Europe, including $2.78 billion in a European “special situations” fund launched last July.
The hedge-fund manager’s new job appeared to be clinched when former President Bill Clinton — speaking at a March fundraising event at Lasry’s Manhattan home — announced that Lasry was going to get the nod from President Obama for the coveted French ambassadorship.
Lasry is a longtime friend of the Clintons, backing both Bill and Hillary in their bids for the presidency. Chelsea Clinton also worked for Lasry’s fund for a short period.
During this past election, the 53-year-old Lasry was one of the few hedge-fund honchos who stuck with the Democrats, raising almost $1 million for Obama’s re-election campaign.
Obama has not yet announced his ambassador choice, and Lasry isn’t talking.
The man who runs Avenue’s European strategy, Richard Furst, is taking over Lasry’s duties of “high-level investment oversight,” said an individual close to the firm.
Furst was named chief investment officer March 15. Lasry’s sister, Sonia Gardner, is Avenue’s president and co-founder.
Avenue’s newest European fund will focus on Northern Europe. Despite Lasry’s earlier comments, it does have some investments in France.