The crisis in German corporate financing is encouraging US distressed-debt hedge fund managers to open offices in Europe.

Avenue Capital Group, a US distressed-debt hedge fund manager with $5.9bn (€4.4bn) of assets under management, has recently opened a London office. Oaktree Capital Management has bases in London and Frankfurt while Cerberus Capital Management, another rival, has an office in Frankfurt. There are 28 US firms among Europe's 1,000 single-manager hedge funds, according to an investment consultant.