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
As of February 28, 2017, the firm's assets under management allocated to the Avenue U.S. Strategy are estimated to be approximately $4.9 billion.
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: