The fund beat its initial target of $750 million, which was set when it launched in July 2021, and will feature separately managed accounts investing alongside the fund. All investors in Fund I recommitted for Fund II, as well as several new investors.
The fund invests in asset-backed, credit-orientated investments that did not benefit from increased liquidity heading into 2022 or that now need lead liquidity following more recent retrenchment.
Dan Zwirn, chief executive of Arena Investors, said: “The covid-19 pandemic caused newfound disruption to the global economy, and expedited trends we were already seeing five to 10 years sooner than expected. While much has changed, Arena’s flexible approach has allowed us to adjust quickly and continually identify attractive opportunities to deliver value to our investors.”
Arena aims to offer investors access to diverse investments across market cycles using an opportunist, special-situations approach. Its first fund achieved an estimated net multiple of invested capital of 1.44x from March 2020 to June 2022.