Evaluating private credit origination models
Private credit origination isn’t one-size-fits-all – it’s a strategic differentiator. In this article, Arrow Global’s Toni McDermott unpacks the distinctions of different models, from centralised direct lending to decentralised, operationally intensive approaches. Arrow stands apart with a fully integrated, locally driven model that prioritises off-market residential real estate opportunities, where deep local expertise and operational agility translate into attractive risk-adjusted returns.
“We have positioned ourselves to operate successfully in the highly fragmented European residential real estate market where the majority of our origination is off-market and where we believe the risk-return profile is most attractive.”
“In Arrow, we operate as a single, vertically integrated firm, exclusively sourcing investments for our funds. This means that everyone, including our local platforms, benefits when our investments perform well and vice versa.”
“We have set ourselves up to be an all-weather investor, with strong local expertise in real estate equity, lending and credit—primarily asset-backed by residential real estate.”
Explore how origination models shape investor outcomes, the role of AI in credit sourcing, and why Arrow’s strategic positioning makes all the difference.
Read the full article here
Toni McDermott
CIO, Credit and Lending
Toni joined Arrow in 2023 as Credit and Lending CIO. During her career spanning more than 25 years, Toni has invested in and managed performing and non-performing portfolios and businesses across Europe including UK, Ireland, Spain, Portugal, Italy, Germany and Greece. Before Arrow Global, Toni spent three years in Hong Kong running Morgan Stanley’s APAC Loan Solutions and Securitisation Group. In Europe, Toni was responsible for Centerbridge’s European Asset Backed Special Situations business for almost five years. Post GFC, Toni was one of the architects of Deutsche Bank’s European Portfolios principal business. Toni also has extensive experience in asset-backed and real estate lending, securitisation, as well as special servicing businesses.
Toni is a trustee of Coram’s Fields and Harmsworth Memorial Playground. She has a BCom International (BCIT) from University College Dublin.