Description

Arrow Global is a leading investor and asset manager in European non-performing loans and non-core assets. Arrow operates a network of asset management platforms in its five key markets (Italy, Portugal, UK, Ireland and the Netherlands) which also acts as an origination platform to source investment opportunities in secured and unsecured assets and generate differentiated returns on its investment. Arrow also operates a fund management business having raised its first third party fund, Arrow Credit Opportunities I, which closed on €1.7 billion of commitments in 2020.

Transaction

We have built significant expertise in the European NPL space since TDR Capital II’s investment in Lowell and initially met with the CIO and Arrow founder a number of years ago. In 2019, we revisited our thematic work around the NPL sector in Europe and quickly alighted on Arrow as a robust platform operating in an attractive risk-return niche with significant upside potential through a strategic repositioning of the business. The Company was beginning to transition from a balance sheet-based investing model to raising third party capital and we saw an opportunity to accelerate this transition and further build out a highly differentiated, vertically-integrated fund manager. We made a board-recommended offer in March 2021 and completed the investment in October 2021.