Arena Investors launches equipment finance subsidiary with $100m

Global multi-strategy investment firm Arena Investors has launched a new subsidiary, Empire Asset Finance, with a commitment of $100m (£74.2m).

Empire will provide non-investment grade middle market companies with flexible equipment financing, targeting deals of between $3m to $50m.

The new direct private credit lender specialises in capital leases, operating leases, and loans, with a focus on the mid-to-large-ticket segment of the $1.3tn annual US equipment finance market.

Its solutions will offer advance rates of up to 100 per cent for new equipment and “competitive” advance rates for used or sale-leaseback equipment.

According to a press statement, Arena said that, by financing assets against their productive value rather than underwriting solely on “rigid formulaic covenants”, Empire enables businesses to expand, while preserving liquidity from their traditional bank facilities.

“Since its founding, Arena has provided creative and flexible solutions for those seeking capital but who cannot be served by conventional institutions,” said Vivek Nayar, managing director of Arena.

“Empire carries that spirit forward, bringing Arena’s resources to the equipment finance space and doing so with a philosophy that creates value for everyone involved.”

Empire is led by chief executive Rick Rockhold, and chief operating officer and chief credit officer Mike Miroshnikov who have a combined 60 years of industry experience.

“For too long, mid to large ticket clients have been stuck with a 50-year-old lending model,” Rockhold said.

“By pairing advanced technology with direct private credit, we’re changing that dynamic, delivering faster, more efficient, and more transparent solutions that actually match the pace of our clients’ businesses.”

Arena Investors, which was founded in 2015, has assets under management of approximately $4.6bn.