A group of Goldman Sachs Group traders in the U.S. is being pursued by at least three competing firms, including Avenue Capital Group as the investment bank prepares to break up the unit, according to two people briefed on the discussions.
Marc Lasry, founder of Avenue Capital, is courting the Goldman Sachs team run by Bob Howard to expand his firm beyond its focus on distressed and credit investing, said the two people, who asked not to be named because the talks are private. He’s vying with buyout firm KKR & Co. and investment bank Perella Weinberg Partners, which also are negotiating with Mr. Howard, people with knowledge of the matter said Sept. 8.
Goldman Sachs is disbanding the principal-strategies business to comply with new U.S. rules aimed at curbing risk. Mr. Lasry and Ed Canaday, a spokesman for Goldman Sachs, declined to comment.
Avenue Capital was founded by Mr. Lasry and Sonia Gardner in 1995 and managed $18.8 billion at the end of July, according to its website. The firm says it has more than 300 employees.
The Goldman Sachs group is led globally by Morgan Sze, who may start his own hedge fund focused on Asia, two people with knowledge of the matter said earlier this month. Mr. Sze in March replaced Pierre-Henri Flamand, the former global head who left to set up a London-based hedge fund called Edoma Capital Partners.
Some of the principal strategies group’s traders and support staff may get roles at Goldman Sachs or seek jobs independently, the people said.
BlackRock also held talks to hire one or more people from the Goldman Sachs group, a person with knowledge of the talks said earlier this month.