Alcentra Global Special

Situations Fund

Fund Investment Objectives

The Alcentra Global Special Situations Fund (the "Fund") aims to generate attractive relative and risk-adjusted returns by investing in specialized credit opportunities in the European and US sub-investment grade debt markets, on a long and short basis. As of November 1, 2008, the Fund does not utilize leverage. The Fund seeks investment opportunities where the return potential is outsized relative to downside risk. Consequently, there is a preference for loans and secured bonds over equities, as they provide a claim on a company's assets. An opportunistic investment approach allows the Manager to allocate among five different areas, with the flexibility to go long and short in each: Fundamental Value Capital Structure Arbitrage Private/Illiquid Debt Event Driven Control Investments To mitigate macro induced volatility/shocks, the Manager consistently employs hedging techniques and avoids external leverage. While the US corporate debt and equity markets have rebounded from their Great Recession lows aided by unprecedented amounts of quantitative easing and modest economic growth, the Manager believes European debt markets continue to be impaired by the European sovereign debt crisis, an overleveraged banking system, financial austerity and anaemic economic growth. Companies' ability to restructure their balance sheets or refinance their debt maturities are constrained by smaller, less liquid and less efficient European bank loan, high yield bond and mezzanine markets, as well as the ongoing new-issue constraints in the European CLO market. We believe for the next 3 to 5 years significant opportunities exist with regard to investing in the undervalued debt of companies that need to restructure their balance sheets, and capitalizing on inefficiencies in the private and public debt markets. Alcentra is one of the largest, global institutional managers of sub-investment grade debt, with strong sourcing, analytical and restructuring capabilities. The firm is one of the oldest, largest European managers specializing in sub-investment grade credit, with both long-only and long/short investment strategies. The Fund leverages Alcentra's $24.6 billion footprint in the global credit markets, its 38 industry-focused, sub-investment grade research analysts, and the specific distressed experience of Alcentra's special situations team1. The Fund is supported by best-in-class operational, financial and technology platforms. David Forbes-Nixon, the Portfolio Manager, has 27 years of experience in special situations while at Alcentra and as a portfolio manager, trader and analyst at Barclays Capital's Special Situations Group in both New York and London. The Fund's dedicated team comprises professionals with a value-oriented investment philosophy, deep knowledge of local European restructuring laws, and significant workout experience