Chelsea Clinton in new hedge fund gig

NEW YORK (CNNMoney.com) -- Former first daughter Chelsea Clinton has joined Avenue Capital Group, a hedge fund manager whose founder has contributed to many Democratic Party campaigns, a person familiar with the matter said on Friday.

People familiar with the matter reported that Clinton, 26, is quitting her job at the consulting firm McKinsey & Co. and will take a position at the New York-based hedge fund Avenue Capital Group.

Avenue Capital, which was formed in 1995, manages about $12 billion in assets and employs more than 240 people, according to the company. The firm focuses on distressed and undervalued credit-related securities, bank loans and private investments.

A spokesperson for Avenue Capital would not comment on the report, saying the company does not discuss its employees.

Avenue, co-founded by Marc Lasry and Sonia Gardner, focuses its investment on distressed securities. Morgan Stanley (Charts) this week bought a minority stake in Avenue.

Before working at McKinsey, Clinton graduated from Stanford University in 2001 and then studied philosophy at Oxford University.

Avenue Capital founders Lasry and Gardner both donated to her mother's New York Senate re-election campaign, according to the Center for Responsive Politics.

Well-known in hedge fund circles, Lasry has contributed to political campaigns for Hillary Clinton, Al Gore, Bill Bradley, John Kerry and other Democrats in recent years, federal election records show. However, Lasry has also contributed lesser amounts to campaigns for President George W. Bush, the records show.

The New York Daily News, which first reported the story, estimated her hedge fund salary in the range of $100,000 to $150,000.

Highly profitable, lightly regulated hedge funds have grown increasingly popular as investment targets by large banks. JPMorgan Chase & Co. (down $0.01 to $46.89, Charts) started the acquisition trend two years ago when it acquired control of Highbridge Capital Management.

Lehman Brothers Holdings Inc (down $1.57 to $74.43, Charts). last year bought a 20 percent stake in Ospraie Management LP, a $2 billion hedge fund firm that invests in commodities and raw materials. Merrill Lynch (down $0.26 to $86.72, Charts) this month bought a minority stake in DiMaio Ahmad Capital, which manages $2 billion in assets.

---from staff and wire reports.

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