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Applied Real Intelligence Launches Venture Debt Fund

Los Angeles-based Applied Real Intelligence has launched its Venture Debt Opportunities Fund. The fund will focus on providing financing solutions to innovative, high-growth, VC-backed companies operating in recession-resistant sectors and underserved regions throughout the United States.

“I am thrilled that the Venture Debt Opportunities Fund is providing institutional investors with access to innovation as an asset class,” said Zack Ellison, A.R.I.’s Managing General Partner and Chief Investment Officer. “Over 85% of the venture debt market is controlled by fewer than ten financial institutions. Founders need access to non-dilutive capital, commercial banks have an approach that is incongruent with financing early-stage companies, and most private venture lenders have limited capacity. We believe that A.R.I.’s deep fixed income investment experience and relationships in key markets will help protect investor capital, deliver substantial portfolio diversification, and provide attractive risk-adjusted returns through immediately actionable opportunities.”

Ellison leads the fund’s investment activities, including sourcing, due diligence, structuring, execution, and portfolio management. Previously, Ellison was Director, U.S. Fixed Income at Sun Life Financial, where he was responsible for corporate credit investing. Prior to Sun Life Financial, he worked within the Global Credit Trading division of Deutsche Bank, where he focused on crossover-rated corporate bonds, credit default swaps, hybrid securities, and preferred stock. During the global financial crisis, he was an investment banker focused on leveraged loans within the media and telecom sectors at Scotiabank.

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