Scargo Hill Capital has locked down Arena Investors as one of its first backers, which will provide it with the capital to make senior secured investments in lower mid-market businesses.
The newly-formed private credit firm announced the new investor on Tuesday, in which it said the firm will target emerging growth retail companies alongside consumer wholesale brands and companies needing transition financing.
“Arena actively seeks to partner with industry experts and proven asset managers that provide access to niche origination strategies and unique investment opportunities,” said Scott Gold, an Arena managing director.
Scargo Hill chief risk officer Thomas Lynch told Private Debt Investor Scargo Hill is already seeing opportunities where the firm could put the capital to work. He declined to say the size of the account.
“We have a really robust pipeline,” Lynch said, adding Scargo Hill is passed the due diligence stage on several potential transactions in which it could invest. The fund will provide first lien asset-based loans.
Scargo Hill announced its launch in January. The co-founders of the firm are Andrew Moser, who will serve as chief executive officer; Thomas Lynch, who will be the chief risk officer; and Mark Gallivan, who will serve as a principal. Moser and Lynch are also managing partners.
“It makes sense for any institutional platform to diversify their funding sources,” Lynch said of potential future capital raising. “But responsibly investing committed capital is our focus now.”
Moser most recently worked at Monroe Capital as its co-head of retail and consumer products and previously founded Salus Capital Partners, where he served as president and CEO, according his LinkedIn profile. Lynch was a senior managing director at Great Oak Advisors, while Gallivan is also formerly of Salus, their LinkedIn profiles showed.
Its initial strategic and lead investors are Schottenstein Family of Companies affiliate SB Capital Group and Stephen Miller, the chief executive officer of 360 Merchant Solutions.