ARBORETUM

OUR APPROACH

Arboretum Investment Advisors, LLC (Arboretum IA) manages alternative investment funds which offer non-correlated returns to traditional bond and equity markets.

Our funds are built on a foundation of asset-based financing to carefully selected companies in equipment-heavy industries including medical, agricultural, energy, environmental, manufacturing, technology and transportation. By providing companies the strategic financing they need to grow, we create alternative investment options which help balance highly-correlated portfolios. Our focus is to invest in business-essential, revenue-producing or cost-saving assets with high in place value. Because our investment strategy is not tied to the stock, bond, real estate, or commodities markets and each investment by the program is secured by equipment or other assets, our non-correlated funds serve as a strong complementary addition to traditional portfolios.

    For businesses in select industries, our origination arm, Arboretum Commercial Finance (CF), provides financing for fundamental capital assets, such as manufacturing and production facilities, for an array of equipment-intensive projects.

With experienced performance as a lender we conduct extensive due diligence on all transactions prior to investing, and consistently leverage our expertise with well-known equipment, vendors, and manufacturers to foster strong relationships and repeat customers.

 

Among the most-financed equipment types, all saw an overall increase in new business volume*

* Source: White Clarke Global Leasing Report 2016

26%

transportation

21.7%

technology

11.7%

Agriculture

9.5%

construction

4.8%

medical

4.7%

office

4.7%

industrial/ manufacturing

3.33%

materials handling

Investment Approach

Each investment opportunity goes through an extensive three-tiered due diligence as a part of the acquisition process.

Originate

Transactions are sourced through our internal deal sourcing team and long standing industry partnerships with originators, investment banks and product vendors. Arboretum IA seeks to originate transactions that focus on business- essential, revenue-producing or cost saving assets with high in-place value.

Underwrite

Arboretum IA’s underwriting team conducts collateral valuation and aims to analyze, understand, and find the long term growth potential with the borrower’s management team and business plan. During the underwriting process, we strive to determine target investment size and risk profile within the portfolio.

Define Asset Coverage

The underwriting process will show us where a company’s revenue streams are being generated. By pinpointing where revenue is coming from, we can determine what assets need to be secured as collateral on the transaction. Investments are primarily collateralized by having ownership of, or security interest in, the asset.

The Arboretum difference is the client experience.

A client-focused way of doing business.

The only definition that matters is your definition of client satisfaction.