ABOUT ARCADIA FUNDS, LLC
At Arcadia Funds, we believe that financial inclusion is a key enabler to reducing inequality and boosting prosperity.
To achieve this, we’ve built a platform that allows us to swiftly allocate capital, on a global scale, to companies seeking to ensure that all households and businesses, regardless of income level, have access to and can effectively use the appropriate financial services and products they need.
We invest our capital and expertise across the enterprise lifecycle, from promising early stage startups to transformational public companies. And where we see important problems that aren’t being solved, we are unafraid to start companies ourselves.
Nevertheless, we are also cognizant that the change we seek will not be immediate. Increasing global financial inclusion is a multi-decade and multi-generational mission, and the work may never be complete.
We apply our passion, technology, and capital in two ways.
Innovative Investment Strategies: Rather than only providing traditional equity or debt capital, we look for and often design alternative strategies best suited for our partner companies.
Innovative Technology Platforms: Technology is crucial to advancing our mission. We’ve leveraged advances in high performance computing, data analysis, and machine intelligence to build a proprietary technology platform that allows us to develop sophisticated credit models, appropriately manage our portfolios, refine our investment process, and track global credit market trends.
So far, this has taken the form of, buying and participating in direct lending products, owning revolving credit facilities, providing capital for insurance linked securities, among other structures and solutions.
Technology, after integrity, offers the best hope of dispassionately solving the conundrum of balancing risk with return. And if technology can be combined with wisdom and the desire to build a societal benefit and then inculcated into one’s investment thesis and subsequent products, then perhaps—just perhaps—investing can serve all masters well and move beyond the uninviting and binary landscape where winners necessitate a ready supply of willing losers.
Arcadia’s embrace of technological innovation, most readily evidenced by our development of software designed to efficiently identify, purchase and track/manage consumer debt, is based on the recognition that the path of disintermediation of financial services is unlikely to be reversed. It will undoubtedly evolve given the pressures of the economy, regulation and competition, but it will not stop now that it has found acceptance in the consumer sphere.
ARCADIA FELLOWS PROGRAM
Arcadia understands that our current and future success depends on the ingenuity and boundless creativity of imaginative, visionary people. By fortune of geography and history, our connections to the Boston area’s premier universities give us access to a large pool of talented individuals just beginning to explore the possibilities of their professional lives. These students offer us fresh perspective and an adventurous belief in technology's ability to enhance our mission in new and exciting ways.
Maya Nigrin (Buffalo, NY): Major in Mathematics and Computer Science (MIT). Maya developed advanced machine learning models (including neural nets) to predict auto loan performance of sub-prime borrowers. The work resulted in an approach to better screen loan applicants while not severely constraining lending volume. Maya was selected from MIT's Student/Alumni Externship Program.
Michael Pena (Somerset, NJ): Major in Electrical Engineering and Computer Science (MIT). Mike developed a proof of concept permissioned blockchain utilizing Hyperledger. Incorporating “smart contracts,” the technology automated the complex payment waterfalls in a typical securitization or structured loan portfolio. Mike was selected from MIT's Student/Alumni Externship Program.