Arena Investors LP is joining SB Capital and 360 Merchant Solutions to provide funding to Scargo Hill Capital, a new asset manager focused on the lower middle-market. No financial terms were disclosed.
BOSTON–(BUSINESS WIRE)–Scargo Hill Capital, LLC, a new institutional asset manager focused on providing asset-based, senior secured direct lending to the retail and consumer product sectors, today announced that Arena Investors, L.P. (“Arena”) has joined SB Capital Group (an affiliate of Schottenstein) and 360 Merchant Solutions in a strategic partnership to fund the firm and its investments. The partnership by Arena, SB Capital Group and 360 Merchant Solutions provides Scargo Hill with the capital to finance senior secured private credit investments that address a substantial market dislocation in the lower middle-market, especially across emerging growth retail companies, consumer wholesale brands and companies in situations requiring transition capital.
“Arena actively seeks to partner with industry experts and proven asset managers that provide access to niche origination strategies and unique investment opportunities and this is exactly what SB Capital Group, 360 Merchant Solutions and the Scargo Hill team bring to the market,” said Scott Gold, Managing Director of Arena Investors. “We are excited about our partnership to capitalize Scargo Hill. This investment will complement Arena’s industry expertise in asset-based consumer and retail finance.”
“As seasoned private credit investors, we view Arena’s investment in Scargo Hill as further market validation of our platform and approach,” said Andrew H. Moser, Managing Partner and Chief Executive Officer, Scargo Hill Capital.
Scargo Hill will utilize the funding to provide tailored senior secured capital to lower middle-market companies concentrated on retail, consumer products and the broader supply chain. The firm’s primary focus is on providing transition capital to fuel ‘turn-ups’, emerging companies and consumer brands.
“We believe that we are uniquely equipped to fill the void left by many lenders, providing borrowers with timely, relevant capital solutions,” said Thomas J. Lynch, Managing Partner and Chief Risk Officer, Scargo Hill Capital.
About Scargo Hill Capital, LLC
Scargo Hill Capital is an institutional asset management platform focused on providing senior secured direct lending to lower middle-market companies across retail, consumer products and the broader supply chain. Scargo Hill offers working capital solutions that provide maximum liquidity and flexibility with the goal to help its borrowers and investors achieve their goals. The firm ideally targets transaction sizes under $25 million but will consider larger, value-add transactions. For more information please visit www.scargohillcapital.com
About Arena Investors, LP
Arena, headquartered New York with offices in California and Canada, is a global investment firm and merchant capital provider that seeks to generate attractive, risk-adjusted, stable, and uncorrelated returns by opportunistically investing across the entire credit spectrum in areas where conventional sources of capital are scarce. Arena employs a team of 38 professionals who originate, structure and manage credit investments in asset based, cash flow and special situation financings. Arena was formed in partnership with The Westaim Corporation, a publicly traded Canadian holding company that focuses on the financial services industry. For more information please visit www.arenafinco.com
About SB Capital Group, a Schottenstein affiliate
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events. With principals who are equity holders in retail enterprises, consumer products, franchising, licensing and real property, SB Capital Group leverages resources and depth of experience to provide services across a wide spectrum of industries. For more information, please visit www.sbcapitalgroup.com
About 360 Merchant Solutions
360 Merchant Solutions is one of the country’s leading consulting, business evaluation, asset acquisition, and asset disposition firms for wholesalers, manufacturers, and retailers. In addition to helping companies maximize asset yield, 360 manages operational and human resources issues, real estate relationships, and other critical areas that are impacted when companies go through a transitional period. For more information, please visit http://360merchants.com