U.S. Strategy

Overview

The Avenue U.S. Strategy seeks to achieve attractive risk-adjusted returns primarily by focusing 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 Avenue U.S. 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

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 investment team conducts extensive research and analysis using Avenue’s top-down/bottom-up approach to find undervalued opportunities and typically seeks to make non-operational control investments in troubled businesses. This provides the strategy maximum trading flexibility and allows Avenue’s investment professionals to focus on pre-investment research and analysis rather than post-investment operating issues.

The strategy generally targets:

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

Senior Management Team

The Avenue U.S. Strategy is managed by a team of senior investment professionals who have spent virtually their entire careers in the distressed debt and securities markets. In addition, numerous investment professionals support the senior investment team. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Jane Castle Senior Portfolio Manager - Avenue U.S. Strategy
Shawn Foley Senior Portfolio Manager - Avenue U.S. Strategy
Matthew Kimble Senior Portfolio Manager - Avenue U.S. Strategy

Europe Strategy

Overview

The Avenue Europe Strategy seeks to achieve attractive risk-adjusted returns primarily by investing in the distressed debt and undervalued securities of European companies. In addition, the Avenue Europe Strategy seeks to create investments in private debt and equity securities of public and private European companies.

The Avenue Europe 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 seeking financing

Approach

Avenue’s experienced investment professionals seek “good companies with bad balance sheets”—firms with sustainable businesses and positive cash flow but whose financial outlook has become uncertain due to endogenous or exogenous factors. The investment team conducts extensive research and analysis using Avenue’s top-down/bottom-up approach to find undervalued opportunities and typically seeks to make non-operational control investments in troubled businesses. The Avenue Europe Strategy may also invest in companies where a restructuring is expected and often takes a leadership role in actively driving the reorganization, bankruptcy or restructuring process. The strategy also focuses on creditor-friendly jurisdictions such as the United Kingdom, Germany, Ireland, and the Benelux and Nordic countries. While Avenue opportunistically invests in other countries following U.K. law, such as South Africa, as well as less creditor-friendly jurisdictions such as France and Italy, the risk/return profile must justify investment in these regions.

The strategy generally seeks to:

  • Maximize risk-adjusted returns through senior debt focus and value-oriented approach
  • Create investments at low valuations
  • Purchase securities denominated in benchmark currencies
  • Pursue relative value investments
  • Invest in creditor-friendly jurisdictions and in securities denominated in benchmark currencies

In pursuing this approach, the Avenue Europe Strategy seeks to produce consistent returns; carefully evaluate risk/return within capital structure, industry and asset class; maintain trading flexibility and preserve capital

Senior Management Team

The Avenue Europe Strategy is managed by a team of senior investment professionals who have spent virtually their entire careers in the distressed debt and securities markets. In addition, numerous investment professionals support the senior investment team. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Richard Furst Chief Investment Officer, Head of Europe Strategy
Jonathan Ford Senior Portfolio Manager - Avenue Europe Strategy

Asia Strategy

Overview

The Avenue Asia Strategy seeks to achieve attractive risk-adjusted returns primarily by investing in the distressed debt and undervalued securities of Asian companies. The Avenue Asia Strategy seeks to be opportunistic across Asia with a particular focus on developed and developing countries, including Australia, Hong Kong, Singapore, South Korea and Japan as well as China, India and Southeast Asia. The firm maintains sourcing and investment professionals throughout five offices in Asia.

The Avenue Asia Strategy generally focuses on:

  • Companies undergoing a restructuring, reorganization or bankruptcy
  • Companies that are operationally sound, but financially troubled due to overleveraged balance sheets, inadequate capitalization or limited access to capital
  • Companies that are undervalued because of discrete extraordinary events or economic conditions
  • Companies being sold for less than their intrinsic value

Approach

Avenue’s experienced investment professionals seek undervalued securities or assets being sold at a discount by non-economic sellers, including single assets or concentrated pools of assets. The team leverages its extensive network of local investment, legal and accounting professionals to source and execute investment opportunities, and engages in active portfolio management. In addition to seeking special situations investments, the Avenue Asia Strategy focuses on investments in debt and equity across industries, sectors and geography.

The strategy generally targets:

  • Distressed debt
  • Viable companies generating positive cash flow
  • Purchases from non-economic sellers
  • Non-performing loans
  • Performing/restructured debt

Senior Management Team

The Avenue Asia Strategy is managed by a team of senior investment professionals who have spent virtually their entire careers in the distressed debt and securities markets. In addition, numerous investment professionals support the senior investment team, most of whom are either local professionals or have worked extensively throughout Asia. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Anil Gorthy Senior Portfolio Manager - Avenue Asia Strategy

Real Estate Strategy

Overview

The Avenue Real Estate Strategy targets U.S.-focused opportunistic real estate investments. The strategy concentrates on residential, office, retail, industrial and hotel properties in major U.S. urban centers and their surrounding areas. The Avenue Real Estate Strategy makes equity investments, on a direct basis and through joint ventures, and also pursues real estate debt opportunities.

The Avenue Real Estate Strategy generally seeks to:

  • Employ a distressed-focused approach to unlock value in all transactions
  • Identify situations that present compelling investment opportunities rather than trends or macro-level market themes
  • Acquire highly-functional assets at a compelling basis that mitigate down-side exposure
  • Implement an “activist” approach to operate investments and execute business plans
  • Exit investments opportunistically to maximize total return

Approach

Avenue’s experienced investment professionals focus on originating real estate investments by combining entrepreneurial deal sourcing and institutional-quality underwriting. Avenue’s extensive network of long-standing industry relationships allows the firm to target direct interests in real property, joint ventures, mortgage loans and mezzanine debt, and interests in public or private real estate investment trusts, pooled funds or other real estate-related companies. In certain instances, Avenue may also provide liquidity to recapitalizations and situations that allow for turnaround opportunities. The strategy seeks to deploy capital in accordance with the principles above throughout various points in the investment cycle.

Senior Management Team

The Avenue Real Estate Strategy is managed by a team of senior investment professionals who have spent virtually their entire careers in the distressed debt and securities markets or real estate industry. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Ed Gellert Senior Portfolio Manager - Avenue Real Estate Strategy
Robert Gellert Portfolio Manager - Avenue Real Estate Strategy

Performing Loans Strategy

Overview

The Avenue Performing Loans Strategy seeks attractive rates of return and capital appreciation primarily in first or second lien secured bank loans in leveraged, non-investment grade companies on a levered basis.  The Avenue Performing Loans Strategy will primarily target the United States and, to a lesser extent, Europe.

The Avenue Performing Loans Strategy generally focuses on:

  • Large cap companies with attractive growth prospects with a particular focus on less cyclical sectors
  • Investing at the top of the capital structure with collateral protection and with the use of leverage
  • Being opportunistic across market cycles

Approach

Avenue employs a disciplined investment and monitoring process to proactively manage and limit risk exposure.  Avenue intends to focus on fundamental value investing with a goal of generating current income, capital appreciation and portfolio diversification.  The objective is to build and actively manage a portfolio that generates annual returns while minimizing volatility correlated to alternative investments.

The strategy generally targets:

  • Senior Secured First Lien Bank Loans
  • Junior Secured Second Lien Loans
  • Unfunded Revolvers 

Senior Management Team

The Avenue Performing Loans Strategy is managed by a team of senior investment professionals who have spent their entire careers in the leveraged finance and private equity markets. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
William Maier Senior Portfolio Manager - Avenue Performing Loans Strategy
Patric Lager Portfolio Manager - Avenue Performing Loans Strategy

Private Equity Strategy

Overview

The Avenue Private Equity Strategy seeks to generate current income and capital appreciation by investing in situations where it can provide capital solutions to businesses in various industries that are headquartered in or principally operating in Europe and the U.S.

The Avenue Private Equity Strategy generally focuses on:

  • Companies that are undergoing transition due to a change-of-control transaction, refinancing or restructuring
  • Companies that are having trouble accessing the capital markets
  • Companies that are undervalued because of discrete extraordinary events

Approach

Avenue’s experienced investment professionals seek “good companies with bad balance sheets”— firms with sustainable businesses and positive cash flow. The investment team conducts extensive research and analysis using Avenue’s top-down/bottom-up approach to find opportunities and will typically seek to make operational control investments in underperforming businesses where a control-oriented investor can drive improvements to unlock substantial value. As a result of Avenue’s competence in fixed income instruments, the Avenue Private Equity team has the flexibility to build positions through debt securities.

The strategy generally targets:

  • Common equity
  • Preferred stock
  • Payment-in-kind (PIK) notes
  • Bonds
  • Mezzanine debt
  • Second lien debt
  • Senior debt

Senior Management Team

The Avenue Private Equity Strategy is managed by a team of senior investment professionals who have spent virtually their entire careers in the distressed debt and private equity markets. In addition, numerous investment professionals support the senior investment team. The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Stephen Trevor Portfolio Manager - Avenue Private Equity Strategy

Public Fund Strategy

Overview

The Avenue Public Fund Strategy seeks to achieve attractive risk-adjusted returns primarily by focusing on investments in public and private corporate debt throughout the U.S., Europe, Canada and Asia.

The Avenue Public Fund Strategy generally focuses on:

  • High yield bonds, bank loans, capital infusions, and stressed/distressed opportunities
  • Event driven strategies that require a catalyst to drive value higher

Approach

The Avenue Public Fund Strategy's investment professionals currently manage:

  • An open-end mutual fund and act as a sub-adviser to another open-end mutual fund         

Avenue's experienced investment professionals execute a value oriented approach through a bottom-up research process that seeks to capitalize on market inefficiencies.

The strategy generally targets investments in companies with the following attributes:

  • Dominant market share
  • Strategically important business
  • Consolidated industry
  • Catalyst to drive value higher
  • Margin of safety

Senior Management Team

The Avenue Public Fund Strategy is managed by a dedicated team of senior investment professionals who have spent virtually their entire careers in the high yield, levered loan and distressed debt markets.  In addition, the team has access to all investment professionals across the Avenue platform.  The senior management team includes:

Marc Lasry Chairman, Chief Executive Officer and Co-Founder
Sonia Gardner President, Managing Partner and Co-Founder
Jeff Gary Senior Portfolio Manager - Avenue Public Fund Strategy

  • Investment Objective

    Avenue Credit Strategies Fund (the “Fund”) seeks total return, primarily from capital appreciation, fees and interest income.

    • Class Investor Class Institutional Class
      NASDAQ Ticker: ACSAX ACSBX
      Cusip 05358F103 05358F301
      Inception Date: 6/1/2012 6/1/2012
      Fiscal Year end: October 31 October 31
      Frequency of Shareholder Reports: Semi-Annually (April 30 and October 31) Semi-Annually (April 30 and October 31)
      Investment Adviser: Avenue Capital Management II, L.P. Avenue Capital Management II, L.P.
      Distributor: Foreside Fund Services LLC Foreside Fund Services LLC
      Administrator, Custodian and Transfer Agent: State Street Bank and Trust Co. State Street Bank and Trust Co.
      Independent Auditors: PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP
      Legal Counsel: Dechert LLP Dechert LLP
    • Daily Pricing As of 11/30/2017
      Net assets (000's): $195,284.58
      Daily NAV: $14.94
      Market Price: $13.68
      Premium-Discount: (8.43%)
    • Daily Pricing As of 12/14/2017
      ACSAX  ACSBX 
      Daily NAV Per Share: 8.03  8.03 
      Change: 0.02  0.02 
         

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information please call 1-877-525-7330 or download the file here. Before investing or sending money you should carefully read the Fund’s prospectus and consider carefully the risks and expenses that you assume when you invest in the Fund’s shares.

For investor inquiries regarding assets under management and related information, please contact investorrelations@avenuecapital.com.

An investment in the Avenue Credit Strategies Fund (the “Fund”) is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or even all of your investment. Please see the Disclosure section for an explanation of the Fund’s primary risks. There can be no assurance that the Fund will achieve its investment objectives.

The information on this web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.

Distributor: Foreside Fund Services, LLC www.foreside.com

The description of the investment strategies set forth herein are general in nature.