Marc Lasry’s Avenue Capital Seeking a Buyer for Impact Fund

Avenue Capital Group is seeking a buyer for its impact investing business after one of the biggest US public pension funds lost interest in the portfolio, according to people familiar with the matter.

The $12.2 billion investment firm run by billionaire Marc Lasry is considering a sale after the New York State Common Retirement Fund, which had been the anchor investor in its first Sustainable Solutions Fund, declined to participate in a second fund under the same strategy, said the people, who asked not to be identified discussing confidential information.

If Avenue fails to find a buyer, it ...