Why local knowledge wins in European private credit
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Local knowledge remains a defining advantage in European private credit. Although interest rate volatility is easing, distress among over-leveraged capital structures continues to create compelling opportunities, particularly in markets such as Germany. For investors seeking alpha, Adam Baghdadi, Managing Director, Lending, says that “the idea that European credit markets are uniform from a regulatory or legal perspective is simply not true.”
Arrow’s extensive local platforms support deep due diligence, disciplined selection, and value creation across granular, mid-market portfolios. Opportunities are most attractive where local insight intersects with mispriced capital structures and sound collateral. Adam adds: “You can do all the right structuring work and buy at a heavy discount, but if all you have to enforce against is an illiquid piece of agricultural land, the result is unlikely to be favourable.” With a focus on living and hospitality assets, Arrow uses its operational footprint and local intelligence to generate consistent value across European credit cycles.
Read the full article in Preqin’s 2026 Global Private Credit Report here
Adam Baghdadi
Managing Director, Lending
Adam Baghdadi is a Managing Director in the Arrow central investment team focused on lending. He has over 13 years of investment experience in credit, lending and corporate finance.
Previously Adam was a member of the investment team at Sixth Street in London, where he worked across a range of credit and special situation transactions with a focus on hard asset and real estate backed opportunities. Prior to that Adam was an investment analyst at HBK, a global credit-oriented multi-strategy hedge fund, where he worked across a range of corporate and structured credit strategies. Adam started his career at Morgan Stanley in the UK Investment Banking team, where he worked across a range of public M&A, takeover defence and debt and equity capital markets transactions.
Adam holds an MA in Economics and Management (1st class honours) from Oxford University.