Arrivato has strategic partnerships with multiple Ultra-High Net Worth private families that set aside a separate entity to deploy debt, acquire, or strategically partner pursuant to the “story deals” or “bankable, but quick close deals” that are secured by physical assets, current revenues, or liquid securities. Our team evaluates opportunities outside the comfort level of conventional, and even most private funds if the factors of the case are compelling. With the changing guidelines in the conventional market, Arrivato provides creative and meaningful solutions to common sense transactions.
Within our circles, we seek the quiet, under-the-radar transactions. Do not want brokered transactions nor the transactions everyone else has access towards. Let’s also make clear that we do not want opportunities. Opportunities are for the high net-worth, country-club, friends, and family types of investors. This is not us.
Here is what excites us – compelling situations that either nobody else has seen and/or unique, insider type position or access to information that is unknown to the general public.
Our management team provides timely feedback for all scenarios. Situations that most people believe are difficult, the borrower has some credit challenges, borrower cannot verify income, and when cash is needed very quickly to resolve a problem.
A couple examples include a multi-family asset with only 30% occupancy and is drastically undervalued in the market, our inner circle SFO investors would see this as an opportunistic play and one to consider for immediate takedown – including our own family office.
Outside real estate, there are mature, everyday companies serving specific niches in the marketplace that have fallen but remain in position to rebound with fresh leadership and liquidity.
At the same time, many of us within these same inner circles are keen to niche companies with a unique position in their market that are distressed, facing bankruptcy, require balance sheet restructuring, operational turnarounds, executing a complex strategic plan, or severely under-performing due to overwhelmed leadership, lack of marketing, and insufficient infrastructure.
This includes working with an (1) over-leveraged company to restructure its balance sheet and exit them from a bank loan; (2) purchasing debt from lenders seeking an exit strategy; (3) acquiring intellectual property; (4) loans using television royalties as collateral via their guaranteed cash flow; (5) working with a regional bank to restructure their loan portfolio or address other internal challenges; (6) businesses that are growing too fast or struggling to catch up on previous challenges beyond the comfort level of their current asset-based lender; (7) borrowers that have had their loan terms re-traded and need a quick close elsewhere.
The majority of the transactions submitted for consideration involve commercial real estate assets including multi-family, office, retail, industrial, self-storage, and land. Outside the real estate market, Arrivato reviews manufacturing, distribution, services companies, oil & gas production and mid-stream distribution, energy efficiency, dark fiber, transportation, water technology, infrastructure, fine art, diamonds, intellectual property, government contracts, defense, EB-5 bridges, structured settlements, sale of receivables, single-invoice factoring, acquisition of a local bank, consumer finance, and other asset-based scenarios across a wide range of sectors.
We closely evaluate the collateral behind sponsors that support the transaction and turn into liquidity within 60 days if the sponsor fails, the amount of capital the borrowers are bringing to the transaction, their technical capacity to execute, and compelling economic benefits to our strategic partners. Additional factors to be considered include evidenced strong pre-leases, significant executed contracts, growth companies out-pacing their available capital, unique position in the supply chain, low loan-to-value, and sponsor’s financial contribution.
Our team also reviews distressed loan and portfolio scenarios across all commercial and consumer asset classes, including those backed by commercial real estate, including distressed CMBS paper, failing construction loans, other judgments, and charge-offs. We will also consider distressed paper supported by producing mining, oil services, trucking, and manufacturing companies. As with all our special situations, these scenarios must be quiet, non-brokered, under-the-radar scenarios.