ARENA SBIC LP

ARENA SBIC, LP ("ARENA") is a secured loan fund providing growth capital to small and mid-sized U.S. clean energy businesses. Clean energy includes businesses that develop or support renewable energy generation or reduce energy consumption, natural resource consumption, fossil fuel usage, or air pollution, including greenhouse gases.

ARENA expects to be licensed and regulated by the Small Business Administration as a Small Business Investment Company ("SBIC"). As an SBIC, ARENA expects to lever limited partner capital commitments on a 2-to-1 basis with ten year, fixed rate SBA debentures priced at a spread to Treasury rates.

ARENA serves to bridge the “valley of death” for companies with projects and balance sheets too small to attract traditional lenders at more attractive terms than typically available from private equity. ARENA will target experienced management teams employing commercially proven technologies. ARENA loans will be secured on a first lien basis with company assets and accompanied by warrants or other yield enhancement mechanisms.

ARENA's focus is to generate current income with targeted total returns to investors, net of fees, between 15% and 20%. ARENA expects its risk profile to be similar to mezzanine funds but returns to be superior largely due to the low cost leverage employed under the SBIC program.

Financial description

The Fund will pursue a buy and hold strategy focused primarily on generating current income with some capital appreciation. The Fund pursues this strategy by allocating the majority of its portfolio to secured loans, or other debt-like investments, accompanied by warrants or other yield enhancement mechanisms.