ARENA SBIC LP
United States of America
Last updated 12 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
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.
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.
of track record
the year funded
Key performance indicators
Asset manager: ARENA Investments
Product track record: Fund has 7 years of track record
Target IRR: 15%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - no committed capital
Style/Stage: Growth Stage
Inception year: 2016
Vintage year: 2016
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: 01/10/2016
Product term: 10 years from closing
Assets under management: 225,000,000 USD (US Dollar)
Investment size: Min: 5,000,000; Max: 20,000,000; Avg: 10,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: 20%
Hurdle rate: 8% on IRR basis%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 2022437557.00
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Fund is focused exclusively on providing growth capital to small and mid-sized clean energy companies. ARENA views this target market as instrumental in driving the transition to a sustainable and low carbon economy providing both environmental benefits and job growth.