Approach

Axar believes middle market opportunities will continue to be robust, independent of the economic cycle

  • Some middle market companies will struggle with leverage while others will have difficulty finding capital to meet complex needs
  • Axar brings highly sophisticated analytical, underwriting and process expertise to these middle market situations and has found limited competition from other capital providers in this arena

There have been at least

450

US bankruptcies per
year since 2011

Source: S&P Global Market Intelligence

96%

of them are

companies with less than $1b of liabilities

Source: S&P Global Market Intelligence

There have been at least

450

US bankruptcies per
year since 2011

Source: S&P Global Market Intelligence

96%

of them are

companies with less than $1b of liabilities

Source: S&P Global Market Intelligence

The Axar Focus

We look for three types of situations:

Bonds and loans trading significantly below par. Fulcrum positions in situations where a restructuring is anticipated or in progress.

Privately originated investments in companies and assets seeking non-control financing. Bespoke, hybrid capital typically containing a fixed income component as well as upside participation via equity.

Other types of investments with asymmetric return profile and hard catalysts.

Fulcrum securities where a restructuring is anticipated or in progress

Solvent companies undergoing industry-wide or other macro pressure. Dislocations often derived from corporate events, regulatory change or industry pressure

Other types of investments with asymmetric return profile and hard catalysts. Opportunities may occur before, during and/or after a credit or other corporate event

We seek investments that we believe meet three conditions:

1

1

Deep discount to our view of intrinsic value

This opportunity is generally created when there is a high degree of situational uncertainty and/or business pressure

2

2

LOW PROBABILITY OF PERMANENT CAPITAL IMPAIRMENT

We look for situations where we believe we are highly likely to recover most if not all of our investment in a worst-case scenario, such as liquidation

3

3

STRONG UPSIDE POTENTIAL WITH A FACILITATING CATALYST

We select investments that we believe have significant appreciation potential as well as an identifiable catalyst. Our preferred catalyst is debt maturity