ARENA Investments LLC is an investment manager that focuses on making collateralized loans to clean energy small businesses. ARENA views this target market as instrumental in driving the transition to a low carbon economy and serves to bridge the “valley of death” for companies with projects and balance sheets too small to attract institutional capital and traditional lenders.
ARENA expects to be licensed and regulated by the SBA as a Small Business Investment Company (SBIC). ARENA’s management team is the first group to receive a “Green Light” from the SBA to form a debenture SBIC focused exclusively on small businesses engaged in “Energy Saving Activities.” . With its exclusive industry focus, ARENA will be designated as an Impact Fund, the first such clean energy debenture SBIC.
ARENA targets U.S. based small businesses active in the clean energy industry seeking growth capital. Clean energy includes businesses that generate renewable energy or reduce energy and natural resource consumption, fossil fuel usage, and air pollution, especially greenhouse gas emissions. Target portfolio companies have, or are on track to have revenues of at least $2 million and a positive EBITDA with commercially‐proven projects, tangible hard assets, and strong management teams. Typical portfolio companies have revenues between $3 and $30 million.
In general, individual investments will range in size between $2 and $20 million. The majority of the portfolio will be secured debt investments with a small portion allocable to equity either on an opportunistic basis or as part of a larger total financing package to a portfolio company. Debt investments will have maturities between 5 and 10 years.
While ARENA will generally not seek controlling positions in companies, it will seek to enhance underlying portfolio company operations and value through its deep knowledge and industry relationships.