Westaim notes Empire Asset's financing model

Executive Summary

• Westaim Corp. reports that Empire Asset Finance LLC, a new subsidiary of Arena Investors LP, has launched with $100 million in committed backing from Arena.
• Empire Asset Finance is positioned as a technology-driven, capital-efficient equipment financing platform targeting the mid- to large-ticket segment of the U.S. equipment finance market.
• The platform specializes in providing flexible financing solutions, including capital leases, operating leases, and loans, to non-investment-grade middle market companies that often lack access to traditional bank capital.

Key Details

• Investment Backing: Arena Investors LP, a $4.6-billion global multistrategy investment firm, has committed $100 million to expand Empire into a leading equipment finance platform.
• Target Market: The firm targets the mid- to large-ticket segment of the $1.3-trillion annual U.S. equipment finance market, focusing on U.S. and Canadian middle market companies.
• Deal Size: Empire targets individual deals ranging from $3 million to $50 million.
• Financing Products: The firm provides capital leases, operating leases, and loans.
• Advance Rates: Solutions offer advance rates of up to 100% for new equipment and competitive advance rates for used or sale-leaseback equipment.
• Operational Model: Empire finances assets against productive value rather than relying solely on rigid formulaic covenants, allowing businesses to expand while preserving liquidity from traditional bank facilities.
• Origination Channels: The firm sources deals directly through its sales team working with end-users and indirectly through its capital market team from peer group lenders and lessors.
• Leadership: The company is led by CEO Rick Rockhold and COO/Chief Credit Officer Mike Miroshnikov, who have a combined 60 years of industry experience.

Notable Quotes

• "Since its founding, Arena has provided creative and flexible solutions for those seeking capital but who cannot be served by conventional institutions," said Vivek Nayar, managing director of Arena. "Empire carries that spirit forward, bringing Arena's resources to the equipment finance space and doing so with a philosophy that creates value for everyone involved."
• "As Arena's newest investment platform, Empire brings the resources, agility and service to deliver equipment financing that fuels the capex needs of middle market companies," said Mr. Rockhold. "For too long, mid- to large-ticket clients have been stuck with a 50-year-old lending model. By pairing advanced technology with direct private credit, we're changing that dynamic, delivering faster, more efficient and more transparent solutions that actually match the pace of our clients' businesses."