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. A NAV loan from Arena provides non-dilutive capital to your fund which can be utilized to inject liquidity into portfolio companies, enhance your fund’s IRR or pay fund expenses / management fees.

Benefit to Funds:

  • Non-dilutive
  • Provides liquidity to existing portfolio companies
  • Frees up capital call lines
  • Can be used to fund equity portion and/or replace asset level leverage on new transactions
  • Can be used to fund businesses that are having trouble accessing the capital markets (i.e. EBITDA negative, turn arounds, out of favor industries, etc.)
  • No covenants at the operating company level
  • Provides incremental equity returns (i.e. can fund equity commitments at portfolio companies without having to call equity capital)​

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