Arena closes dislocation fund on $519m

The fund will invest in opportunities arising from covid-related economic disruption and market dislocation.

Arena Investors has held a final close on its Arena Special Opportunities Fund I, on $519 million, far surpassing its $300 million target.

The fund, which was launched in March with what Private Debt Investor reported was $300 million in commitments, will invest in asset-backed, credit-oriented opportunities presented by economic disruption and market dislocation from the covid-19 pandemic. It has a flexible, global mandate, with a majority of investors based in North America and Australia.

Arena’s investment strategy “is grounded in its 20-plus years of experience investing globally across all markets”, the New York-based manager, with $1.7 billion under management, said in a statement.

The covid-19 pandemic “has caused newfound disruption to both society and the global economy and moved trends we were already seeing forward by five to ten years, especially in the industries that have been most heavily impacted,” Dan Zwirn, Arena chief executive and chief investment officer, said in the statement. Despite the changes wrought by the pandemic, Arena’s flexible approach has allowed it “to adjust quickly and continually identify attractive opportunities” to deliver value to investors, Zwirn added.

It is thought that the fund has a feeder for insurance companies to enable them to receive optimised capital treatment, with each receiving an A-rated note equivalent to 85 percent of their investment, PDI previously reported.