Polaris Advantage

Polaris Advantage

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

A Differentiated Opportunity in the Debt Markets

Polaris Advantage targets an underserved pocket of the credit universe — bonds and debt instruments undergoing restructuring — where proprietary methodology can generate proceeds in excess of face value.

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, Inc.

$1B+

Originated at family office (2019–2025)

$2B+

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 multi-hundred-million-dollar structured transactions through affiliated advisory platforms.

Investment Highlights

Asymmetric Return Profile

80% to Investors

80% of profits above par recovery flow to investors. Participation in restructuring proceeds is uncapped — the more value the IP unlocks, the greater the investor return.

Contractual Downside Support

$80MM Protection

A par-value floor mechanic is supported by an $80MM structured receivable provided by an affiliated credit counterparty, materially mitigating principal risk subject to counterparty creditworthiness.

Proprietary Restructuring IP

$2B+ Track Record

A curated library of structuring, claims-enhancement, and workout techniques — developed and refined through $2B+ of institutional credit underwriting — forms the Trust’s core competitive edge.

Tax-Advantaged Structure

Reviewed by Counsel

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

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	$111,000,000 (Targeted)
Security Type	Trust Beneficial Interests
Profit Split	80% Investor / 20% Sponsor
Downside Support	Par-value floor via $80MM structured receivable
Eligibility	Qualified Purchasers / Accredited Investors
Target Close	May 2026
Counsel	Leading debt & tax counsel

Return Profile

Illustrative Return Scenarios

Based on $111MM 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 506b
Funding Goal: $111,000,000
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

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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 Asset Management, Inc.
Series : 2026-1
Offering Size : $111mm (targeted)
Security : Trust Beneficial Interests
Profit Split : 80% Investor / 20% Sponsor
Downside : Par-value floor
Eligibility : Qualified Purchasers
Target Close : May 2026
Counsel : Leading debt & tax counsel

Polaris Advantage Series 2026-1

Documents

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