Arena holds second close on fund at $300m, sources say

The manager expects a final close of the special situations fund by 2022.

Arena Investors held its second close on Arena Special Opportunities Partners at $300 million, just one month after its first close at $215 million, sources close to the manager say. The firm declined comment.

The fund is targeting $750 million, with a final close expected on or before 1 January 2022, according to the source. Arena’s predecessor fund, Arena Special Opportunities Partners I fund, closed in December 2020 at $519 million, handily exceeding its target of $300 million.

Arena’s Special Opportunities Partners funds originate all the loans in special-situation credit-oriented investments. The funds have a flexible, global mandate with a focus on diversification with investments where value can be crystalised through structures that are short duration, senior secured and with tight covenants.

Arena ended the first half of 2021 funding $400 million in more than 200 transactions, according to the source, which included 40 new and 175 add-on investments. As of August, the firm’s total deployment since its founding in 2015 was more than $3 billion across 270 transactions, bringing its gross profits to nearly $550 million, according to the source.

The New York-based firm’s investment focus includes corporate private credit, structured finance and real estate, among others. Arena had $2.6 billion under management as of 18 June 2021.