Arrow Global’s ACO II recognised as top distressed debt fund for Q1 2023
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Arrow Global is proud to announce that its Arrow Credit Opportunities II (“ACO II”) fund has been recognised as the largest distressed debt fund in Q1 2023, and the fourth largest debt fund overall closed during the quarter, according to Private Debt Investor’s Fundraising Report.
In a challenging fundraising landscape, which saw the lowest Q1 figures in the past six years, ACO II achieved remarkable success by reaching its hard cap of €2.75 billion in under eight months. This achievement was supported by the unanimous re-up of ACO I investors, as well as significant new commitments from a diverse group of global institutional investors spanning the U.S, Europe, Asia-Pacific, and the Middle East.
Arrow’s unique investment strategy, supported by its 19-specialist asset management and servicing platforms, enables the fund to access off-market opportunities and secure 90% of the existing ACO II portfolio through real estate, cash in court, or other mixed securities. This focus on diversification and asset-backed strategies provides investors with valuable security in the face of broader market uncertainty.
Zach Lewy, CEO and CIO of Arrow Global, said: “We are delighted to be recognised as the leading distressed debt fund of the period and among the top four across the debt space. We consider our relationship with our investors as a partnership, and we are grateful for their support, which enabled us to successfully complete the fundraising process in less than eight months.”
“Our best-in-class asset management and servicing platforms generate differentiated and advantageous returns through disciplined investing, underwriting insight, and proprietary deal flow. This vertically integrated advantage empowers us to create sustainable value across a range of alternative asset classes, including real estate, direct lending, and high-yield credit, throughout market cycles.”
With a strong track record spanning 17 years, Arrow has invested over €8 billion in a wide range of opportunities, predominantly real estate asset backed. The company manages approximately €80 billion of third-party assets under management (AUM) using multiple key European regulatory licenses.
Source: Private Debt Investor
Largest fund closes
Largest funds closed in Q1 2023
| Fund | Manager | Capital raised ($bn) | Strategy |
| HPS Strategic Investment Partners V | HPS Investment Partners | 12.00 | Subordinated / mezzanine debt
|
| Crescent Credit Solutions VIII | Crescent Capital Group | 8.00 | Subordinated / mezzanine debt
|
| Audax Direct Lending Solutions Fund II | Audax Group | 3.00 | Senior debt
|
| Arrow Credit Opportunities II | Arrow Global | 2.93 | Distressed
|
| Atalaya Special Opportunities Fund VIII | Atalaya Capital Management | 1.80 | Distressed
|
| Comvest Credit Partners VI | Comvest Partners | 1.74 | Senior debt
|
| HGI Multifamily Credit Fund | Harbor Group International | 1.60 | Subordinated / mezzanine debt
|
| Deerpath Capital VI | Deerpath Capital Management | 1.50 | Senior debt
|
| Mesa West Real Estate Income Fund V | Mesa West Capital | 1.37 | Senior debt
|
| AG Credit Solutions Fund Annex Dislocation Fund 2 | Angelo Gordon | 1.30 | Subordinated / mezzanine debt
|
For further information:
Arrow Global
Nick Jones, Director, PR and Communications
+44 (0)7545 059 442