[SINGAPORE] Global multi-strategy investment firm Arena Investors is shutting its Singapore office and seeking to reallocate resources elsewhere, according to sources familiar with the matter.
The firm found that investments in Asia were often not as appealing on a risk-to-return basis, nor as scalable compared to those in North America and Europe, one of the sources said, who asked not to be identified discussing private matters. Still, Arena remains open to pursuing compelling opportunities in the region, the source added.
Arena’s Asia-Pacific team is focused on opportunistic credit-related investments with a flexible mandate, including direct lending, asset acquisitions and joint venture formation, according to its website.
Arena’s move to shut its Singapore office comes as the US$1.7 trillion global private credit market faces mounting headwinds. Rising default warnings have sparked concerns over underestimated risks. Deal flow across Asia-Pacific has also slowed, forcing some alternative managers to pause deployments.
Australian fund manager Tanarra Capital said this week that it’s halting new investments for its distressed credit fund due to a lack of viable opportunities, Bloomberg News reported.
BlackRock also recently agreed to unwind its private credit partnership with Abu Dhabi state-owned wealth firm Mubadala Investment due to challenges in sourcing deals.
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Arena had submitted an application to the International Finance Corp (IFC) to raise funds for its prospective Asia Pacific-focused private credit strategy, the sources said. A representative at IFC declined to comment.
The majority of Arena’s Singapore operations will be absorbed by its Bangalore office, which supports global functions, including investments, asset servicing and valuation, among others, one of the sources said.
The firm also maintains a New Zealand office focused on real estate credit investment and servicing, the source said, adding that Arena employs around 70 people across the Asia Pacific.
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A representative for Arena said that the firm “remains committed” to the Asia-Pacific region. “Overall, our headcount in Asia will rise, but we will continue to allocate resources based on where we see the greatest opportunities at any given time,” the representative said.
New York-headquartered Arena Investors specialises in private credit for special situations and has deployed more than US$5 billion of capital, according to its website.
In May, the firm closed its third special opportunistic fund with commitments exceeding US$1 billion, according to a statement. BLOOMBERG
