Local origination and asset backing will determine Europe’s winners
In the May edition of Private Debt Investor, Adam Baghdadi, Managing Director, Lending Solutions, at Arrow Global, discusses why Europe’s private credit market is entering a more selective phase, and why that should sharpen, rather than weaken, institutional conviction in the asset class. He argues that growing dispersion in underwriting standards is increasing the gap between crowded, widely syndicated deals and locally originated, asset-backed strategies, where discipline, downside protection and market knowledge remain decisive. For institutional investors active in private credit allocations, the piece offers a timely perspective on manager selection, local origination, liquidity and where opportunity remains most compelling across European credit markets.
“There is clear momentum behind allocators seeking out areas of private credit beyond straightforward sponsor-backed direct lending.”
“If you want to be successful in Europe, you have to have teams on the ground in each jurisdiction because over 90 percent of deals will not leave the country.”
Read the full article here
Adam Baghdadi
Managing Director, Lending Solutions
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.