Loans to Funds

Investment Size

$5M - $50M

Net Asset Value

$25M+

Average Term

0-3 Years

Fund Strategy

Any

Strategy Description

Arena’s Corporate Private Credit team seeks to originate debt investments in the form of NAV loans to Private Equity, Venture Equity, Credit, and Long/Short Hedge funds (among other fund strategies), and can also structure loans secured against LP holdings (or portfolios thereof) and GP interests.

Benefits to Funds and LPs

  • Non-dilutive
  • Does not require a capital call to fund equity commitments
  • Provides liquidity to portfolio companies
  • Frees up capital call lines
  • Can be used to fund equity and/or replace portfolio company leverage
  • Fund portfolio companies having trouble accessing the capital markets (i.e., EBITDA negative, turnarounds, out of favor industries, etc)
  • No covenants at portfolio company level
  • Improves fund IRR by using leverage
  • Obtain liquidity on your LP interest in an alternatives manager without selling your investment

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Loans to Funds
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