Arena holds third close on fund at $520m

The manager’s special situations fund is targeting a fundraise of $750m.

Arena Investors held a third close on Arena Special Opportunities Partners Fund II at $520 million, six months after it held its second close on $300 million, Private Debt Investor has learned.

The special situations fund, launched in July 2021, is targeting a fundraise of $750 million, according to PDI data.

Arena declined to comment.

The predecessor fund, Arena Special Opportunities Partners Fund I, closed in December 2020 at $519 million, vastly exceeding its $300 million target. That fund has a net internal rate of return of 21 percent, the sources said.

Arena’s Special Opportunities Partners funds originate all 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.

The New York-based firm focuses on investments including corporate private credit, structured finance and real estate, among others. Arena had about $3 billion under management as of January 2022.