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Avenue Capital Group, the hedge fund-firm run by Marc Lasry, is in talks to hire members of Goldman Sachs Group Inc.’s proprietary-trading business in the U.S., according to two people briefed on the discussions.

Lasry is pursuing the Goldman Sachs team run by Bob Howard to expand New York-based Avenue Capital beyond its focus on distressed and credit investing, said the people, who asked not to be named because the talks are private. KKR & Co., the New York-based buyout firm, and investment bank Perella Weinberg Partners LP also are negotiating with the group, 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. The unit uses multiple strategies to make bets with the New York-based firm’s own money.
Lasry declined to comment, as did Ed Canaday, a spokesman for Goldman Sachs.
Avenue Capital was started in 1995 and managed $18.8 billion at the end of July, according to its website.
The Goldman Sachs group is led globally by Hong Kong-based Morgan Sze, who may start his own hedge fund focused on Asia, two people with knowledge of the matter said earlier this month. 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 LLP.
To contact the reporters on this story: Katherine Burton in New York at kburton@bloomberg.net; Saijel Kishan in New York at skishan@bloomberg.net
To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net
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