Banks seek out partners for European NPLs
“Banks have retreated from more capital and operationally-intensive sectors such as speciality finance, which has created an opportunity for private credit providers.”
“Investors are increasingly focused on asset-backed strategies, which has the potential to dwarf corporate credit and bring benefits in terms of lower correlation and diversification.”
“Sixty-five percent of European housing stock is more than 45 years old, requiring upgrading—private capital will have a meaningful part to play.”
In December’s edition of Private Debt Investor, Arrow Global’s CIO of Credit and Lending, Toni McDermott, discusses the evolving European debt landscape and how banks are refocusing on capital efficiency due to new regulatory pressures from Basel 3.1 and IFRS9. This shift has opened doors for private credit firms like Arrow Global, which specialises in asset-backed strategies, to address the growing funding gap. With a focus on residential real estate, Arrow leverages its expertise in operationally complex lending to manage local, granular assets and meet rising demand as banks retreat from specialised lending sectors.
This article dives into emerging opportunities within distressed debt, the expanding role of private capital, and the potential of asset-backed lending to support both economic resilience and sustainable real estate.
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.