Arbitrium builds board and risk focus with high profile appointment
Australian debt and special opportunities investment specialist, Arbitrium Capital Partners (Arbitrium), has appointed renowned financial services professional Harvey Kalman to its board as a non-executive director and chairman of its credit risk committee.
Kalman brings to Arbitrium over 30 years of technical, strategic, operational and commercial experience and capabilities across all aspects of financial services and investment management.
An iconic contributor to Australia’s funds management sector, he has been pivotal in building a dynamic and world-class funds management sector in Australia. In July this year he left his high profile role of Managing Director (UK and Europe) and Global Head of Business Development at fund services group, Equity Trustees, after 21.5 years at the firm.
Kalman’s appointment brings enormous ballast to Arbitrium’s advisory team chaired by eminent Australian businessman, Ray Horsburgh AM.
Commenting on his new role, Mr Kalman said, “I am very pleased to be joining Arbitrium’s team of outstanding individuals, who together combine an enormous depth of experience and a sharp, specialist investing lens.
“As chair of the group’s credit risk committee, my focus will be on assessing investments from all angles to ensure portfolios are robust and well set to achieve objectives, as well optimising operational and compliance functions,” he said.
Arbitrium invests in opportunistic debt, with the view to financing mid-market assets over a three to five year timeframe, with a longer distribution tail. The firm is currently advanced in raising institutional capital for its $300m Arbitrium Credit Partners Fund which will close at the end of the year.
Arbitrium chief operating officer and alternative investing expert, Daniel Liptak, said Kalman’s appointment brings a massive tailwind to the fast growing team.
“Harvey’s role in assessing and monitoring risk is critical to our risk-adjusted return focus. We are thrilled and privileged to have his experience on board,” he said.
“Our mid-market pipeline looks compelling with plenty of good, durable businesses challenged to access and retain lines of capital as economies recover and grow through Covid-19.
“These assets, which span manufacturing, aquaculture, technology, meat processing and pharmacies, are in distress, not because their models are compromised, but because they can’t access desired levels of funding at the right cost or terms. They are also open to maximising upside opportunities through seasoned and sector specialist advice and restructuring efforts.
“Australia is a rich and diverse market for mid-market assets and we are extremely well positioned to become a strong performer in this space, which has funding gaps being left by retreating banks, as well as filling the void for wholesale investors challenged to generate an attractive risk-adjusted return on their capital.”
Arbitrium has been steadily building since September 2020 when the firm was established by Liptak and capital restructuring expert, Mukhtader Mohammed.
Earlier this month, the firm appointed Australian pastoralist, Paddy Handbury, to its advisory board, bolstering its investment capability across agribusiness and rural sectors.
In January, it appointed its first managing director, Blake Ammit, from FC Capital, with over 25 years of M&A, investment banking, debt structuring and turnaround management experience. Also at this time, former Tasplan CIO Ian Lundy was appointed to the firm’s investment committee as an independent member. Lundy has worked as a director of Hobart Airport and trustee director of Utilities Trust of Australia, a $6 billion infrastructure fund.
The firm’s newest member, Kalman, is also a board director and chair of the board audit & investment committee at the Menzies Foundation and has served on the board of the Victorian Legal Services Board and Commissioner. Prior to Equity Trustees, he held senior executive roles with ANZ and KPMG after beginning his career as an analyst with the Ford Motor Credit Company.
The firm inked its first deal in May, financing the acquisition of a Swedish multinational engineering firm for Australian drilling equipment and services firm, Drillman.
Arbitrium Capital Partners is a fund manager with team that has over 70+ years of combined experience in, funds management and corporate turnarounds through numerous credit cycles. These individuals, bring their wealth of funds management, advisory and business operating experience to provide access to opportunities that other fund managers, with less proficiency, cannot offer. Arbitrium, meaning ‘the power to decide’ in Latin, prides itself in providing patient secured capital along with solutions to mid-market corporates where banks and non-bank institutions are unwilling to provide funding. For more information, please visit https://www.acpartners.com.au/
Queries regarding Arbitrium Capital Partners can be directed to Emma Cullen-Ward at OneProfile Communications, Sydney +61 (0)414 989 137 or firstname.lastname@example.org