Unlocking the private debt opportunity: my perspective on opportunity and growth

In the September/October edition of Investment and Pension Europe (IPE) Real Assets, Zach Lewy, CEO and Chief Investment Officer of Arrow Global, explores the expanding opportunities in private debt. He explains how the retreat of traditional banks from lending, driven by regulatory pressures and high interest rates, is creating a ‘golden moment’ for private credit lenders who can step in with innovative and disciplined strategies.

While some sectors like office real estate and leveraged buyouts face challenges, Zach highlights promising areas such as residential real estate in Europe, fuelled by a housing shortage and migration trends, and the last-mile logistics sector driven by e-commerce. The hospitality sector in Southern Europe also offers growth potential due to evolving work-life preferences.

Arrow Global’s strong local presence and platform-based approach are critical in navigating these opportunities across the fragmented European market. Zach underscores the need for a disciplined and selective approach, emphasising prudent loan-to-value ratios and careful asset evaluation to build resilient portfolios. As private credit evolves, Zach predicts a shift towards asset-backed lending, offering institutional investors a stable, attractive alternative in the current economic climate.

Read the full article here