Distressed Debt:

The market for distressed debt exemplifies the inefficiencies sought by us. Bargains often arise in the market for distressed debt because holders of previously sound instruments find themselves in possession of creditor claims of uncertain value and pressure to dispose of them.

Our team has a record of successful investing in financially distressed companies. Our approach manages risk by buying claims on assets at a significant discount to value and achieves substantial gains by returning companies to financial viability through the restructuring process. Investments are primarily senior and secured debt of operationally sound companies which are leveraged too highly and thus become financially distressed. We generally take an active role in the restructuring of both the company's balance sheet and operations. Investment opportunities range from bank debt to public bonds to trade claims and are sourced from both developed and emerging countries, but primarily from the United States.

Debtor-In-Possession Financing:

We provide post-petition lending to debtors-in-possession ("DIP") on a secured basis. Often these loans accompany our distressed debt investments (pre-petition claims) during the Chapter-11 reorganization process to maintain the value of the underlying assets.

We also provide standalone asset based loans to debtors-in-possession who are in need of a source of working capital. We are able to tailor financing programs by working closely with bankruptcy counsel.

Special Situations:

We provide capital for publicly-traded companies to facilitate financial restructurings; and other unique investment situations. Special Situation financing can come in the form of Debtor-In-Possession loans, Bridge Facilities or other short-term instruments.

Mezzanine:

We participate in mezzanine investments in sponsored, non-sponsored or public companies. Our investment returns typically include interest or dividend payments and participation in the equity value of the issuer.

Principal Investments:

It is the aim of our principal investment strategy to invest in companies in which we obtain control or substantial influence, often although not necessarily through the medium of distress. We are flexible and opportunistic in our approach, benefiting from unique access to deal flow. We make investments of $1 to $50 million, at all levels of the capital structure.

Venture Capital:

We provide equity capital used to fund growth requirements or used to facilitate strategic acquisitions in more established companies. Our partners are experienced venture capitalists who began their careers as entrepreneurs, learning how to build successful companies from the ground up. We've turned that experience into a successful venture capital practice.

Leveraged Transactions:

We provide capital for traditional management buyouts and recapitalizations of mature companies that have substantial cash flow and sound sustainable business fundamentals.