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
Randal Klein Senior Portfolio Manager - Global Funds
Craig Hart Portfolio Manager - Avenue U.S. Strategy

Europe Strategy

Overview

The Avenue Europe Strategy seeks to achieve attractive risk-adjusted returns primarily by investing in special situation credit opportunities. 

The Avenue Europe Strategy generally focuses on:

  • Investing in senior secured loans and bonds
  • Special Situation lending, including asset-backed lending
  • Stressed and dislocated opportunities
  • Specialty finance platforms

Approach

Avenue’s experienced investment professionals seek companies and platforms with sustainable businesses which have complex financing requirements or 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 attractive investment opportunities across a broad range of industries and asset classes. The Avenue Europe Strategy may also invest in companies where a restructuring is expected and often takes a leadership role in actively driving the restructuring and recapitalization process. The strategy focuses on creditor-friendly jurisdictions in Northern Europe such as the United Kingdom, Germany, Ireland, and the Benelux and Nordic countries. 

The strategy generally seeks to:

  • Maximize risk-adjusted returns through a senior debt focus and value-oriented approach
  • Lend to high quality companies and platforms which have limited access to traditional sources of debt finance
  • Create investments at attractive valuations
  • Invest in creditor-friendly jurisdictions

In pursuing this approach, the Avenue Europe Strategy seeks to produce consistent returns; carefully evaluate risk/return within capital structure, industry and asset class 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 credit 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
Jonathan Ford Senior Portfolio Manager - Avenue Europe Strategy
Padraig Moore 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

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

Sustainable Solutions Strategy

Overview

The Avenue Sustainable Solutions Strategy seeks credit-oriented investments primarily in private, middle-market companies and related projects that may advance select social and environmental impact themes while generating attractive risk-adjusted returns and current income.

The Avenue Sustainable Solutions Strategy generally focuses on:

  • Companies seeking direct financing
  • Companies that are in growth stage
  • Companies and projects in line with UN Sustainable Development Goals

Approach

Avenue’s experienced investment professionals seek to deliver attractive current income and total returns while advancing the core mission of contributing to a more sustainable, resilient and secure society. Investments are expected to be made primarily in investment opportunities within our areas of focus, which may include (i) sustainable infrastructure, (ii) resource efficiency, (iii) agriculture and water resources, (iv) climate change mitigation, (v) clean energy, and (vi) safety and security.

The strategy generally targets:

  • Private Credit Opportunities
  • Senior Secured Lending
  • Second Lien Debt
  • Mezzanine Debt
  • Private Equity and Warrants

Senior Management Team

The Avenue Sustainable Solutions Strategy is managed by a team of senior investment professionals who have spent their careers in the 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
John Larkin Head of Impact Investments
Peter Pulkkinen Portfolio Manager - Avenue Sustainable Solutions Strategy

Venture Strategy

Overview

The Avenue Venture Strategy seeks to provide creative financing solutions to high-growth, venture capital-backed technology and life science companies. The Avenue Venture Strategy will generally focus on companies within the underserved segment of the market created by the widening financing gap between commercial banks and larger debt funds.

The Avenue Venture Strategy generally focuses on:

  • Companies seeking growth capital to supplement equity funding
  • Companies seeking dry powder to finance acquisitions, specific assets or working capital
  • Companies seeking liquidity to strengthen balance sheet while minimizing shareholder dilution

Approach

Avenue’s experienced investment professionals seek to deliver attractive risk-adjusted returns through interest income while offering the potential to realize gains from warrants and small equity positions.  These companies are generally cash flow negative, yet offer significant enterprise value coverage for our debt investment.

The strategy generally targets:

  • Growing companies with healthy business fundamentals and differentiated intellectual property
  • Private and publicly traded companies
  • Term loans repaid over a period of 24 to 48 months
  • Initial investment sizes ranging from $3 million to $30 million

Senior Management Team

The Avenue Venture Strategy is managed by an experienced team of senior investment professionals who have spent their careers in the venture debt market. 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
Dan Holman Senior Portfolio Manager - Avenue Venture Strategy
Chad Norman Senior Portfolio Manager - Avenue Venture Strategy
Tony Pandjiris Senior Portfolio Manager - Avenue Venture 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 and is a sub-adviser to an open-end mutual fund.         

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

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

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