Approach

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

Market Inefficiency & Entry Point Opportunities Inefficient markets create attractive entry points
Forced selling, limited competition, and complexity can lead to dislocations not typically found in large-cap credit.

Structural Barriers Limit Competitors Axar thrives in segments where others retreat
Managers evolved to favor scalable structures, and larger funds avoid smaller deals, leaving a capital void in the middle market.

The Axar Focus

We look for three types of situations:

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

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.

Fulcrum securities where a restructuring is anticipated or in progress.

Fulcrum securities where a restructuring is anticipated or in progress.

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

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.

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