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