Arena Investors has secured $300m for credit opps fund: sources – exclusive

The special opportunities vehicle will seek to benefit from market dislocation in the wake of the coronavirus pandemic.

Arena Investors has begun fundraising for a credit opportunities vehicle seeking $300 million as well as expanding its real estate credit business, according to sources close to the situation.

The fund is called Arena Special Opportunities Partners Fund I and will seek asset-backed, credit-oriented investments with an emphasis on distressed situations.

It’s thought the fund launched at the beginning of March and has already secured soft commitments equivalent to its target size. PDI has learned that Arena is discussing raising additional capital above target over the next three to six months to take advantage of increased market opportunities presented by the covid-19 crisis.

Commitments are understood to have come from a broad base of investors around the world with the majority based in North America and Australia. The fund features a feeder vehicle for insurance companies to allow them to receive optimised capital treatment with each receiving an A-rated note worth 85 percent of their investment and the remaining 15 percent as an unrated note.

On the real estate side, Arena is expected to launch Arena New Zealand Real Estate Credit Fund II in June and is looking to raise $250 million. The strategy benefits from a New Zealand government guarantee programme worth NZ$2 billion ($1.1 billion; €1.1 billion) for the construction of affordable housing, mostly in the Auckland area. The first vintage of the fund launched in December sought $150 million and is already fully deployed.

Arena Investors declined to comment.