Arrow has successfully executed the pivot to becoming a fully integrated alternative asset manager
Arrow’s business model is highly synergistic. Our three business lines overlap to create the ‘sweet spot’ where Arrow’s Balance Sheet can co-invest into new assets managed by Fund and Investment Management. Arrow’s Asset Management and Servicing business can then service the assets on behalf of both.
Arrow’s investment team have a 15-year plus track record of successfully investing our balance sheet into non-performing and non-core assets. Arrow typically co-invests our balance sheet alongside third-party investor funds, managed by the Fund and Investment Management business, on approximately a 25:75% basis on investments that it makes.
Arrow’s pan-European servicing platform services a large amount of assets for both Arrow’s Balance Sheet business and its Fund and Investment Management business, as well as for third-party clients such as other investment managers and banks.
The Fund and Investment Management business currently has €4.3 billion of funds under management, including our flagship ACO 1 fund.
Arrow’s model is very different from other institutional fund models in the market. The majority of debt funds have a small team based in an international capital centre and access the entire circa €1.5 trillion non-performing loan and non-core asset market by mainly targeting large bank asset auctions of greater than €100 million. Arrow’s model is different. Because Arrow has a large local presence in each of its markets, with local asset servicing businesses providing deep asset expertise on a granular basis, it is able to form strong relationships with potential asset sellers and develop a detailed knowledge of a wide range of asset classes on a granular level. This has resulted in the Group consistently doing more of its investments in non-competitive, off-market bi-lateral trades that are smaller in size and offer higher returns.
Each of Arrow’s business segments work synergistically to extract the most value possible from its investments. Each new deal in ACO 1 is invested on approximately a 25:75% co-investment basis between Arrow’s Balance Sheet business and the Fund and Investment Management business on behalf of third-party investors. This means that Arrow is generating strong returns on its invested equity while simultaneously delivering capital-light management fees on the invested capital from the Fund and Investment Management business.
In the majority of cases, Asset Management and Servicing will be the sole servicer to the asset that has been bought, providing a further source of capital-light income. The result of this model is that Arrow can continue to grow strongly while being less capital intensive and generating higher quality, capital-light earnings for shareholders.
Arrow operates in five European markets, UK, Ireland, Portugal, Netherlands and Italy. It operates market-leading investment and servicing brands that are well respected and play a fundamental part of the European financial ecosystem, where we provide investment opportunities for institutional funds and deleveraging solutions for banks.
Established in 2005, Arrow Global is an investor and alternative asset manager specialising in non-performing and non-core assets. Regulated in our European markets, we identify, acquire, and manage secured and unsecured loan and real estate portfolios from, and on behalf of, financial institutions such as banks, institutional fund investors and specialist lenders.
We help financial institutions reduce their balance sheets and recapitalise to increase mainstream lending, providing valuable capital and expertise to a growing European market. Our award-winning customer service operations provide tailored support to people experiencing financial difficulties.
Arrow Global operates in five main European geographies (UK, Portugal, Netherlands, Italy and Ireland).
As well as operating the Arrow Global brand, Capquest is also part of the Group in the UK.
Founded in 1985, Capquest is a credit solutions provider with over 30 years of market experience. Clients include leading banks and high street lenders, credit card companies, motor finance and utilities providers, as well as other consumer credit providers.
Based in Glasgow, it services Arrow Global as well as third-party accounts using a market leading customer services platform.
To find out more visit www.capquest.co.uk
Founded in 2008, Mars Capital is a mortgage administrator and servicer. The mortgages we administer are our own; we have purchased them from other lenders and have legal ownership of the loan agreements. We manage every aspect of mortgage administration, using our own mortgage experts and technology to provide our customers with a high quality and reliable service.
To find out more visit www.marscapital.co.uk
Drydensfairfax solicitors is a dual-regulated, specialist law firm focused on recovering money and assets on behalf of its clients in a highly professional manner.
The firm represents commercial organisations requiring a high quality, litigation led approach to their volume debt recovery and insolvency advisory needs and it’s expertise and strength in depth means it continually delivers pragmatic, commercially sensitive solutions. The firm was acquired by the Arrow Group in 2019.
To find out more visit www.drydensfairfax.com
Based in Dublin, Mars Capital Finance Ireland ('Mars') was approved by the Central Bank of Ireland in 2016 as an Irish Regulated Credit Servicing Firm. We provide loan servicing solutions for the owners of performing, non- preforming and reperforming mortgage assets. Mars provide the full suite of servicing solutions that ensure our clients are compliant with the workings of the Irish Regulatory Codes, including the holding of Legal Title where required. Our mission is to “think like the loan owner” and ensure that we are maximising returns for our clients whilst ensuring we provide fair, appropriate and innovative solutions for our customers.
To find out more visit https://www.marscapital.ie/
Zenith specialises in managing structured finance transactions in Italy.
Established in 1999, Zenith was the first Italian company to obtain a rating as Master Servicer by Standard & Poor’s (in 2004). In 2017, this rating was raised to Strong, the highest level, with stable outlook, for all asset classes.
To find out more visit www.zenithservice.it/en
Founded in 2005 as PARR Credit, our experience covers management of performing, sub-performing and non-performing banking, financial and commercial products.
In 2018, the Company became part of the Arrow Global Group (United Kingdom), being now integrated into one of the main European realities for the purchase of management loans.
Whitestar Italy can count on more than 600 employees and collaborators, in the offices of Rome and Tirans (Albania).
To find out more visit www.whitestar-as.it
Europa Investimenti is an institutional investor operating in the Italian distressed opportunities arena. Founded in 1988, was among the earliest Private Equity investors in Italy. In 2008 Europa Investimenti started a new investment cycle in the distressed assets space with new shareholders and a renovated management team.
Outstanding track record, experienced management team and established relationship network provide EI with an accredited, qualified and widely recognised reputation.
To find out more visit www.europainvestimenti.com
Sagitta is an operator specialized in the management of illiquid alternative assets (NPL & UTP, real estate and credit assets) and in special situations.
It leverages the specific skills in asset management by the shareholder Arrow Global, with the aim of positioning itself as an innovative platform in the Italian panorama for asset management.
Norfin is a leading Real Estate investment fund manager with HQ in Lisbon. It specialises in investing and managing direct equity participations in Real Estate assets typically via closed-end private equity funds. Founded in 1999 and acquired in 2018 by Arrow Global Group, Norfin currently manages assets worth approximately EUR 1.5 billion on behalf of a range of Institutional and sophisticated private investors.
Its approach is based on Active Asset Management drawing upon the long experience and seniority of executives to drive results at the operational and financial levels. While favouring efficient capital and financial structures, Norfin do not believer in complex financial engineering to drive returns. It’s objective is to deliver superior risk-adjusted returns by managing Real Estate risk.
Norfin is a financial institution regulated by the relevant regulatory bodies in Portugal.
To find out more visit www.norfin.pt
Founded in 2007, Whitestar is a full service, integrated credit servicing specialist which offers advisory, real estate management, securitisation and structuring, analytics, and related loan portfolio investment services.
Whitestar Asset Solutions, S.A. is a leading Portuguese servicer and the only ‘one stop shop’ able to offer a complete and integrated asset management solution to investors and originators.
Currently, the company has circa 500 employees, in offices in Lisbon and Porto.
To find out more visit www.whitestar.pt
Founded in 1996, Vesting Finance is a financial servicing provider which offers primary and special servicing, including recovery, for financial institutions and equity investors. It manages performing, sub-performing and non-performing portfolios of consumer credit, residential mortgages, SME and CRE.
Vesting Finance also offers a full range of credit management services, from acceptance to billing and from receivable management to pre and judicial collection for mid and corporate clients across a variety of industries such as rental, telco, utility and pension administrators.
To find out more visit www.vestingfinance.nl
Founded in 2005, Focum is a consumer marketing and credit information specialist which offers a variety of solutions in the area of marketing, data management, credit risk and collections management. Focum helps companies maximize their customer relationships.
Services range from credit ratings and fraud prevention to customer targeting and marketing intelligence. Clients include (online) retailers, utilities providers, telco, fundraisers and collection agencies.
To find out more visit www.focum.nl