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.
Overall, we seek “scratch and dent” scenarios backed by great people and great businesses where there is a story or situation beyond the comfort level of traditional lending channels where there is a compelling economic reason to align capital.
We do not seek out brokered transactions that have made the proverbial rounds. Well-trafficked transactions are not our cup of tea.
Here is what excites us – compelling situations that either nobody else has seen and/or a unique, high-barrier-to-entry position or access to information that is unknown to the general public.
Our management team provides timely feedback for all scenarios. These include 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. This often involves needs to extend credit lines or monetize receivables beyond the traditional guidelines. We also work with scenarios that extend the capacity of specialty lenders and niche businesses with secured revenue streams behind investment grade credit.
The Arrivato team is actively seeking to attract niche businesses that are uniquely situated within their market experiencing distressed, facing bankruptcy, require balance sheet restructuring, operational turnaround candidates, those 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; (8) municipalities with special projects backed by investment grade credit and compelling economics.
These transactions involve both real estate and agnostic business scenarios.
The real estate scenarios include multi-family, office, retail, industrial, self-storage, and land. The business scenarios involve manufacturing, distribution, services companies, oil & gas production and mid-stream distribution, energy efficiency, dark fiber, transportation, water technology, infrastructure, intellectual property, government contracts, defense, EB-5 bridges, structured settlements, sale of receivables beyond the limits of traditional A/R lenders, 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.