The Australian-based corporate lender aims to take advantage of the large funding gap that exists between what the major banks can provide and the strong and growing demand from corporate borrowers.
Its inaugural fund has been underpinned by more than $30 million from its major shareholders Victor Smorgon Group, Sandbar Investments (Barry and Darren Smorgon) and former Investec global chief executive Stephen Koseff, who is also Arrowpoint’s chair and head of its investment committee.
“It is a privilege to partner with such successful business builders and create an innovative lending business focussed on the burgeoning asset class of private corporate debt,” Arrowpoint joint managing directors Michael Kurland and Andrew McDonnell said.
Victor Smorgon Group chief executive and Arrowpoint Investment committee member Peter Edwards added: “Victor Smorgon Group considers itself a leader in partnering with unique business ideas and management teams. This new fund provides us the opportunity to allocate capital into an asset class which further diversifies and complements our existing portfolio.”
“We are excited by Arrowpoint’s ambition to become a leading alternative debt provider in the market and its strong growth since inception has expedited its fundraising process.
“Stringent investment criteria blended with flexibility and speed allow us the opportunity to solve solutions for our borrowers whilst also providing attractive, regular cash income to our investors.”
Koseff said: “I have been surprised and encouraged by the strong risk-adjusted returns that are available in the market, especially since Arrowpoint focuses primarily on senior, secured debt facilities to quality businesses.”
The diversification angle, coupled with strong shareholder alignment and an experienced team, is very appealing, he added.