Steve Cohen’s family investment vehicle, Cohen Private Ventures, has announced it will lead an $80 million funding round in Oro Mobility Holdings, a subsidiary of the heavily indebted car rental company Hertz. The move, disclosed on Tuesday, represents a strategic bet on a specific segment of Hertz’s business amid ongoing financial challenges.

Hertz, which emerged from bankruptcy in 2020 under private equity owners Knighthead Capital Management and Certares Capital Management, continues to grapple with significant leverage and operational difficulties. The company carries approximately $6 billion in debt, overshadowing projected earnings before interest, taxes, depreciation, and amortization (EBITDA) of just $220 million for 2026, according to data from LSEG. Key issues include high vehicle maintenance costs and fluctuating used-car prices, the latter directly affecting the valuation of Hertz’s rental fleet.

Cohen’s investment values the Oro Mobility unit at around $500 million. A portion of the invested capital will be allocated to retiring Hertz debt at a discount, a move intended to alleviate some of the company’s financial strain and potentially delay or avoid another bankruptcy filing. However, the transaction involves shifting a valuable asset out of the reach of Hertz’s existing lenders, an approach that has sparked concerns about potential creditor disputes.

This strategy resembles a precedent set by Xerox, which utilized a legal loophole in debt covenants to spin off assets and restructure obligations. Such maneuvers often provoke litigation from creditors who may challenge the transfer of assets outside their claims. Analysts suggest Hertz could still face negotiations requiring extended debt maturities and reductions in creditor principal in exchange for increased ownership stakes, given the company’s weakened equity valuation of roughly $700 million—less than one-third of its worth in April 2026.

Cohen’s involvement marks a departure from prior investor approaches, such as that of Bill Ackman’s Pershing Square Capital Management, which in late 2024 acquired a 20 percent stake in Hertz through a combination of cash and derivatives. Ackman exited his position earlier this year amid a halving of Hertz’s share price, reflecting difficulties in revitalizing the entire business. In contrast, Cohen’s focus on a single subsidiary, coupled with structural protections and priority rights in the deal, could position his investment more securely.

While the broader outlook for Hertz remains uncertain, Cohen’s targeted investment underscores a cautious, asset-specific approach in a company still navigating complex financial pressures and operational volatility.