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
As of January 31, 2017, the firm's assets under management allocated to the Avenue Europe Strategy are estimated to be approximately $4.4 billion.
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: