ARRABON CAPITAL PARTNERSA DIFFERENT PERSPECTIVE ON VALUE

Opportunity beyondthe obvious.

Complex credit deserves more than a quick conclusion. See the market context, follow the process, and understand the questions that matter before taking a next step.

Begin with the market ↓ Speak with a representative ↘

✦Arrabon Capital Partnersin collaboration with Polaris Advantage

01 THE PERSPECTIVE

Start with what the market
may be missing.

Distressed situations are rarely simple. The opportunity, if there is one, sits at the intersection of price, contractual rights, restructuring dynamics, and disciplined execution.

Find the dislocation.

Debt undergoing restructuring may trade below face value when uncertainty, complexity, or forced selling changes who is willing to own it.

Price is the starting point—not the conclusion.

Understand the structure.

Capital position, claims, counterparties, documentation, and the practical path through a workout all shape what recovery could mean.

The details determine the opportunity.

Consider the whole picture.

Potential recovery belongs in the same conversation as liquidity, execution risk, contractual support, fees, and tax treatment.

A sound decision holds every factor together.

02 MARKET CONTEXT

A large universe.
A narrow point of entry.

Polaris’s public market overview describes a broad distressed-credit landscape. These sponsor-reported figures offer context—not a forecast, valuation, or assurance of investment results.

REPORTED MARKET SIZE $2T+

Global distressed debt outstanding

REPORTED DISCOUNT RANGE 15–40%

Average discount to face value at distress

PEAK-CYCLE ACTIVITY 1,200+

Corporate defaults annually

REPORTED ANNUAL VOLUME $500B+

Annual restructuring volume

MARKET LENS / 01

Reported discount range at distress

15–40%

15%40%

0%10%20%30%40%50%

A lower purchase price can create room for recovery—but only if underwriting, documentation, and execution support the thesis.

Market figures and “Why Now?” themes are presented by Polaris Advantage in its public market overview and have not been independently verified by Arrabon. They may change. Review the sponsor source ↗

03 THE PROCESS

Five stages.
One continuous discipline.

Move through the sponsor’s described process one stage at a time. Each step reframes the same question: what must be true for value to be realized?

IDENTIFY THE DISLOCATION

Look where others
may look away.

Identify corporate and structured debt instruments trading at significant discounts to face value. Focus on situations where complexity may obscure recoverable value.

This is a description of the sponsor’s process, not a projection of results. Restructuring outcomes and recoveries are uncertain.

04 THE DECISION LENS

Recovery is only
one part of the picture.

A thoughtful review considers four connected dimensions. This framework is educational and should be tested against the definitive offering documents and independent advice.

DECISION FRAME / 04 INPUTS Read the full picture.

POTENTIALRecovery path

↘

STRENGTHContractual support

↘

DURATIONLiquidity & time

↘

IMPACTLegal & tax

↘

ALL FOUR CONVERGE Sound
decision

Evidence, terms, time, and structure considered together.

No single input tells the whole story.

What drives recovery?

Examine the underlying claims, capital structure, valuation assumptions, counterparties, and route to resolution.

What support actually exists?

Read the governing documents closely. Contractual support depends on enforceability and counterparty creditworthiness.

What must remain illiquid—and for how long?

Consider holding-period uncertainty, transfer limitations, cash-flow timing, and the absence of a secondary market.

How does the structure affect you?

Independent legal and tax advisers should assess the structure in the context of your own facts and circumstances.

05 WHO WE SERVE

One opportunity.
Three points of view.

Choose the perspective closest to yours. The page will surface the questions that should lead your review—not replace it.

FOR THE DISCERNING INVESTOR

Expand your
investment perspective.

Explore an alternative credit strategy with a defined approach to sourcing, restructuring, and recovery. Start with the documents. Bring your advisers into the conversation.

BEGIN YOUR REVIEW WITH THESE QUESTIONS

01How does the strategy fit my portfolio?

02What are the liquidity and capital risks?

03How are recoveries and distributions determined?

↗ Open your review checklist PDF

Arrabon Capital Partners powered by Polaris Advantage Asset Management

06 THE COLLABORATION

A shared focus.
A distinct advantage.

Arrabon Capital Partners works with Polaris Advantage to introduce a specialized credit opportunity to investors and their trusted advisers.

Polaris describes experience across credit underwriting, structured finance, and portfolio management. Its strategy focuses on debt instruments undergoing restructuring and the value that active engagement may help unlock.

Credit underwritingStructured financePortfolio engagement

07 A CLOSER LOOK

Good decisions begin
with good questions.

Open each answer for a concise orientation, then confirm every current term in the definitive offering documents.

What is the underlying investment strategy?+

Polaris describes a distressed-credit strategy that acquires debt instruments undergoing restructuring. It applies underwriting, claims-enhancement, and workout methodologies with the aim of improving recoveries. The private placement memorandum and related documents define the actual investment terms.

Who is this opportunity intended for?+

The sponsor identifies accredited investors and qualified purchasers as the intended audience. Eligibility must be verified, and eligibility alone does not establish suitability. Investors should review the opportunity with their financial, tax, and legal advisers.

How should I think about the tax component?+

The sponsor describes a trust structure that seeks to pass through bad-debt and operating expenses. Whether deductions are available, when they arise, and whether they can be used depends on the final structure, applicable law, and each investor’s circumstances. No tax outcome is guaranteed; independent tax review is essential.

Does contractual support guarantee my principal?+

No. The sponsor describes a contractual par-value floor supported by a structured receivable. Its effectiveness depends on the governing documents, counterparty creditworthiness, and enforceability. It is not a guarantee against loss, and investors may lose capital.

What risks and liquidity constraints should I review?+

Trust interests are illiquid, and the sponsor describes no secondary market. Material risks include counterparty failure, uncertain restructuring outcomes, portfolio concentration, valuation uncertainty, and changes in law or tax treatment. Review the full risk factors, fees, expenses, distribution terms, and potential holding period in the offering documents.

How do I receive the full offering materials?+

Begin with the sponsor’s investor portal. Polaris outlines a process that includes a confidentiality agreement, access to the private placement memorandum, optional discussion with management, eligibility verification, and subscription documentation. Confirm current availability and terms directly with the sponsor.

08 CONTACT THE TEAM

Bring your questions.
Start a conversation.

Tell us a little about what you would like to explore. Submit your note here and it will be delivered directly to the team.

LOOK CLOSER. ASK BETTER QUESTIONS.

A new perspective starts
with a conversation.

For accredited investors, qualified purchasers, and the professionals who advise them.

Contact the team ↗

Opportunity beyondthe obvious.

Start with what the market
may be missing.

Find the dislocation.

Understand the structure.

Consider the whole picture.

A large universe.
A narrow point of entry.

Reported discount range at distress

Five stages.
One continuous discipline.

Look where others
may look away.

Recovery is only
one part of the picture.

What drives recovery?

What support actually exists?

What must remain illiquid—and for how long?

How does the structure affect you?

One opportunity.
Three points of view.

Expand your
investment perspective.

A shared focus.
A distinct advantage.

Good decisions begin
with good questions.

Bring your questions.
Start a conversation.

A new perspective starts
with a conversation.

Let’s look closer.

A simple approach.

Opportunity beyondthe obvious.

Start with what the marketmay be missing.

Find the dislocation.

Understand the structure.

Consider the whole picture.

A large universe.A narrow point of entry.

Reported discount range at distress

Five stages.One continuous discipline.

Look where othersmay look away.

Recovery is onlyone part of the picture.

What drives recovery?

What support actually exists?

What must remain illiquid—and for how long?

How does the structure affect you?

One opportunity.Three points of view.

Expand yourinvestment perspective.

A shared focus.A distinct advantage.

Good decisions beginwith good questions.

Bring your questions.Start a conversation.

A new perspective startswith a conversation.

Start with what the market
may be missing.

A large universe.
A narrow point of entry.

Five stages.
One continuous discipline.

Look where others
may look away.

Recovery is only
one part of the picture.

One opportunity.
Three points of view.

Expand your
investment perspective.

A shared focus.
A distinct advantage.

Good decisions begin
with good questions.

Bring your questions.
Start a conversation.

A new perspective starts
with a conversation.