New leasing company launch

Canadian investment group Westaim has completed a deal with hedge fund manager Daniel Zwirn to create a new leasing company, to be known as Arena Finance Co., which will provide and invest in sub-prime auto loans, among other credit segments.

Westaim announced it had established and capitalized the operations with about $180 million, to originate, acquire, hold, and possibly sell “asset-oriented credit investments” that could be sold as asset-backed securities.

Cameron MacDonald, the president and chief executive officer of Westaim stated: “We are extremely excited to have completed the Arena transactions and look forward to working with Dan and his team of seasoned professionals to build out the Arena group. The addition of the Arena group represents another step in our goal of assembling a portfolio of high-quality businesses.”

Daniel Zwirn, chief executive officer and chief investment officer of the Arena group said: “We are pleased to be partnering with Westaim in the launch of the new Arena businesses and appreciate the confidence shown by investors in the potential of Arena. We hope to reward that confidence by developing Arena and delivering returns to Westaim’s shareholders.”