Polaris Advantage

Polaris Advantage

Investment Thesis
Investment Highlights
Market Opportunity
Management
Risk & Protection
Pitch Deck
Documents

A Unique Value Proposition in the Debt Markets

The Polaris Advantage Issuing Trust (the “Trust”) is a purpose-built vehicle providing qualified investors differentiated exposure to a curated portfolio of bonds and debt instruments undergoing restructuring. The Trust’s strategy is powered by proprietary, debt-related intellectual property — a library of structuring, claimsenhancement, and workout methodologies designed to position the Trust to realize potential restructuring proceeds in excess of stated face value. The structure pairs this asymmetric upside participation with contractually-supported downside protection — a combination not typically available to institutional debt investors.

Market Inefficiency

Distressed debt markets exhibit persistent mispricing. Traditional institutional buyers lack the proprietary restructuring IP to unlock value embedded in complex debt instruments trading below recovery value.

Asymmetric Structure

The Trust captures upside through an 80/20 profit split on returns above par recovery while an $80MM structured receivable provides a contractual par-floor — a combination rarely available to institutional debt investors.

Proprietary Edge

A library of structuring, claims-enhancement, and workout methodologies developed over years of institutional credit practice positions the Trust to extract value inaccessible to conventional market participants.

Institutional-Grade Leadership

Maxwell Cohen

Chief Credit Officer & Head of Underwriting

Polaris Advantage Asset Management’s lead credit executive, Max Cohen, brings more than a decade of institutional credit experience across asset-based finance, special situations, and leveraged transactions. As Director of Underwriting at a prominent family office (2019–2025), he originated and underwrote in excess of $1 Billion of financing facilities and built the firm’s diligence framework. Prior roles include Chief Credit Officer at an asset-based lending platform, Director of Underwriting at an institutional funding group (~$10 billion underwritten cumulatively across roles), and Analyst at a middlemarket fund management firm. He currently advises ultra-high net worth clients on million to multi-billion-dollar structured transactions through affiliated advisory platforms.

$1B+

Originated at family office (2019–2025)

$10B+

Debt Cumulative underwriting across career

10+

Years institutional credit experience

Career Timeline

Current

Chief Credit Officer & Head of Underwriting

2019–2025

Director of Underwriting (UHNW Family Office)

Prior

Chief Credit Officer

Prior

Director of Underwriting

Early Career

Analyst

Currently advises UHNW clients on projects from millions to multi-billion dollar structured transactions through affiliated advisory platforms. Works closely with the Merchant Bank as a Managing Director

Investment Highlights

Asymmetric Return Profile

80% to Investors

Participation in potential upside from successful debt restructurings, with an 80 / 20 profit split for any returns above par recovery.

Contractual Downside Support

$80MM Protection

A par-value floor mechanic is supported by an $80MM structured receivable provided by an affiliated credit counterparty, with the aim of materially mitigating principal risk.¹

Proprietary Restructuring IP

$2B+ Track Record

Access to a proprietary body of debt-related intellectual property — structuring, claims-enhancement, and workout techniques designed to unlock restructuring proceeds in excess of the stated face value of the underlying bonds.

Tax-Advantaged Structure

Reviewed by Counsel

Trust design seeks to provide pass-through of bad-debt expense and cancellation-of-indebtedness income, reviewed by external debt and tax counsel.

Institutional Execution

Documented History

Sponsored and managed by Polaris Advantage together with an affiliated asset management platform, with documented execution history across the underlying strategy.²

Structure & Terms

Offering Structure

INVESTORS

Qualified Purchasers
Accredited Investors

POLARIS ADVANTAGE ISSUING TRUST

Series 2026-1
Trust Beneficial Interests

DISTRESSED DEBT PORTFOLIO

Bonds & Debt Instruments
Undergoing Restructuring

$80MM STRUCTURED RECEIVABLE

Affiliated credit counterparty | Par-value floor mechanic

Indicative Terms

Issuer	Polaris Advantage Issuing Trust
Sponsor	Polaris Advantage Asset Management, Inc.
Series	2026-1
Offering Size	$22mm (targeted)
Security	Trust Beneficial Interests
Profit Split	20% Investor / 80% Sponsor
Downside	Par-value floor via structured receivable
Eligibility	Qualified Purchasers / Accredited Investors
Target Close	August 2026
Counsel	Leading debt & tax counsel

Return Profile

Illustrative Return Scenarios

Based on $22MM offering size. For illustrative purposes only.

Scenario Detail

Par Recovery

$111MM

Full par recovery. $80MM structured receivable support active.

Moderate (+10%)

~$119MM

8% above par returned to investors from 80% profit split.

Strong (+25%)

~$131MM

20% above par returned. IP-driven claims enhancement scenario.

Exceptional (+50%)

~$151MM

40% above par. Full IP upside realization on complex restructurings.

Investment Type: Invest market
Offering Type: Reg D 506c
Funding Goal: $22,000,000
Initial Amount Raised: $0
Minimum Investment Amount: $100,000

CAPITAL STACK

Total

No Video available

Market Opportunity

The $2+ Trillion Distressed Debt Universe

$2T+

Global distressed debt outstanding

15–40%

Average discount to face value at distress

1,200+

Corporate defaults annually (peak cycles)

$500B+

Annual restructuring volume

Why Now?

• Rising rates have accelerated distress in leveraged credit

• Post-COVID maturity walls creating a restructuring supercycle

• Bank retrenchment from special situations leaves capital gap

• Proprietary IP advantage most potent in complex situations

The Strategy

Proprietary Restructuring IP — How It Works

Sourcing

Systematic identification of distressed bonds and debt instruments trading at significant discounts to face value across corporate and structured credit markets.

Underwriting

Proprietary credit analysis applying claims-enhancement frameworks to assess recoverable value beyond stated face, leveraging $2B+ underwriting track record.

Acquisition

Disciplined entry pricing based on modeled restructuring outcomes. Target instruments where IP-driven recovery exceeds acquisition cost plus execution risk premium.

Workout & Enhancement

Active engagement in restructuring process applying proprietary structuring and workout methodologies to drive recovery proceeds above par value.

Distribution

Proceeds above par distributed 80% to investors / 20% to sponsor. Par-floor mechanic supported by $80MM structured receivable provides downside protection.

Project Title	Document Title	Action
Polaris Advantage	Private Placement Memorandum - POLARIS	View
Polaris Advantage	Organizational Consents Executed - POLARIS	View
Polaris Advantage	Subscription Agreement - POLARIS	View
Polaris Advantage	Polaris Advantage Asset Management - Bylaws	View
Polaris Advantage	Polaris Tax Opinion re Debt Purchase and Sale of Trust	View

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Risk & Downside Protection

Downside Protection Mechanics

Par-Value Floor Mechanic

Contractually supported par-value floor seeks to return investor principal at par in restructuring recovery scenarios. Backed by $80MM structured receivable from affiliated credit counterparty.

Affiliated Credit Counterparty

The $80MM structured receivable is provided by an affiliated entity with documented institutional credit capabilities and execution history across the underlying strategy.

Counsel-Reviewed Structure

Trust structure reviewed by leading external debt and tax counsel. Designed for pass-through tax treatment and regulatory compliance across investor eligibility categories.

Disciplined Underwriting

Entry pricing discipline enforced by CCO Maxwell Cohen, drawing on $2B+ underwriting track record. No instrument acquired without documented recovery case exceeding acquisition cost.

Key Risk Considerations

• Counterparty risk: par-floor support subject to affiliated counterparty creditworthiness

• Liquidity: Trust Beneficial Interests are illiquid; no secondary market

• Execution risk: restructuring outcomes are uncertain and IP-driven results not guaranteed

• Concentration: portfolio may have material exposure to specific issuers or sectors

• Regulatory: changes in bankruptcy, restructuring, or tax law may impact outcomes

• Valuation: distressed debt values can be highly volatile and difficult to assess

• Past performance is not indicative of future results

• This teaser is summary in nature and does not constitute an offer to sell; full PPM governs

Investment Summary

Issuer : Polaris Advantage Issuing Trust
Sponsor : Polaris Advantage Asset Management, Inc.
Series : 2026-1
Offering Size : $22mm (targeted)
Security : Trust Beneficial Interests
Profit Split : 20% Investor / 80% Sponsor
Downside : Par-value floor via structured receivable
Eligibility : Qualified Purchasers / Accredited Investor
Target Close : August 2026
Counsel : Leading debt & tax counsel

Polaris Advantage Series 2026-6

Documents

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