Europe’s credit reset: Finding value through local insight
“The next phase of this cycle will continue to reward investors who combine patience with proximity, selectivity with structure, and local insight with institutional discipline.”
“As rate shocks expose fragile structures, disciplined underwriting and proximity to assets are defining where durable returns will come from.”
“Scale is valuable, but in European credit, local presence is what turns scale into performance.”
Featured in PitchBook‘s 2025 Global Private Debt Report, Adam Baghdadi highlights the importance of collateral quality, conservative structuring and jurisdiction-specific knowledge in navigating Europe’s fragmented credit landscape. He notes that strategies focused on secured, asset-backed lending in structurally undersupplied sectors such as living and select hospitality continue to demonstrate resilience, particularly where investors can access mid-market opportunities, acquire assets at a discount and actively manage outcomes through on-the-ground servicing platforms.
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Full Report https://pitchbook.com/news/reports/2025-annual-global-private-debt-report
Adam Baghdadi
Managing Director, Lending
Adam Baghdadi is a Managing Director in the Arrow central investment team focused on lending. He has over 15 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.