Arena Investors, LP (“Arena”), a $3.5 billion institutional asset manager, and Arbitrium Capital Partners (“Arbitrium”), a specialist private debt investment firm based in Australia, today announced the establishment of a joint venture with an initial capacity to deploy up to AUD 100 million in Australian mid-corporate credit transactions. The joint venture will focus on distressed and special situation transactions across Australia and New Zealand.
The strategic partnership between the two firms will enable Arena to expand its offering of financing solutions in Australia and will enable Arbitrium to broaden its private debt offering across the credit spectrum. Arena Asia-Pacific team members will collaborate with the Arbitrium team, with offices and team members in Sydney and Melbourne.
Mukhtader Mohammed, a co-founder of Arbitrium, said: “We provide flexible funding to mid-market corporate borrowers that cannot attract funding from traditional sources of debt capital. We are pleased to partner with Arena, who has substantial global experience in special-situations lending. As the credit cycle turns, our opportunity set grows in Australia and New Zealand.”
“The principals of Arbitrium have historically demonstrated an ability to originate, troubleshoot and manage special-situation opportunities in Australia in a manner that enhances value creation for multiple stakeholders,” said Henry Chang, a director on Arena’s Asia-Pacific Private Investments team.
Arbitrium has an established team with broad-ranging experience across corporate restructuring and turnarounds. Middle-market transactions in Australia and New Zealand offer a compelling opportunity set as conventional providers of capital retreat and further leave a funding gap.
This partnership will couple Arbitrium’s on-the-ground expertise and relationships with Arena’s global mandate, infrastructure and multi-strategy approach.
About Arena Investors, LP
Arena Investors is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With $3.5 billion of invested and committed assets under management as of December 31, 2022, and a team of over 100 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations. The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions that cannot be addressed by banks and other conventional financial institutions. See www.arenaco.com for more information.
About Arbitrium Capital Partners
Founded in 2020, Arbitrium Capital Partners is an Australian investment firm specialising in investing in special situations, opportunistic and distressed debt. The fund aims to provide flexible solutions to complex situations for middle-market companies where banks and non-bank institutions cannot or are unwilling to provide funding. Arbitrium invests in event-driven special-situations transactions where there is an opportunity for a turnaround of the borrower and takes an active role in the financial restructuring of the borrower. Arbitrium invests in corporate debt secured by some form of collateral (property, plant and equipment, cash, receivables) including senior secured loans, uni-tranche loans and hybrid loans (convertible) loans. Arbitrium can invest in pre-restructure and post-restructure debt, subject to our credit assessment.
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