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, announced that Arena Investors, L.P. 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.