U.S. Strategy

Overview

The Avenue U.S. Strategy focuses on the distressed debt and undervalued securities of U.S. companies. In addition, the Avenue U.S. Strategy may invest in real estate debt or equity.

The strategy generally focuses on:

• Companies in financial distress or undergoing a turnaround
• Companies in bankruptcy, reorganization or liquidation
• Companies that are undervalued because of discrete extraordinary events
• Companies whose securities the firm's investment team believes to be undervalued

As of June 30, 2010, the firm's assets under management allocated to the Avenue U.S. Strategy were estimated to be approximately $11.0 billion.

Approach

Avenue's experienced investment professionals seek "good companies with bad balance sheets" - firms with sustainable businesses and positive cash flow but whose financial situation is distressed. The firm will typically make a non-controlling investment in the troubled business. The firm's investment professionals generally focus on pre-investment research and analysis rather than post-investment operating issues.

The strategy generally targets:

• Restructured and post-reorganization equities
• Event-driven situations
• Trade claims
• Distressed securities
• High-yield debt
• Bank debt

Senior Management Team:

The senior management team includes: