Why manager skill matters more than ever in European private credit
In the Pitchbook Global Private Debt Report, Adam Baghdadi, Managing Director, Lending Solutions, at Arrow Global, explains why manager skill matters more than ever in European private credit. As macro headwinds expose differences in underwriting quality, he sets out why institutional investors should look beyond the asset class in aggregate and focus instead on the strategies and managers best equipped to perform through a less forgiving cycle. The article makes the case for asset-backed lending, local origination and in-house underwriting as the foundations of resilient private credit investing in Europe, while also highlighting the growing importance of liquidity, selectivity and operational oversight in manager selection.
“For institutional investors, the question is no longer whether private credit remains attractive. The question is which parts of the market are best positioned to navigate a less forgiving cycle.”
“In my experience, local origination is not just a sourcing advantage; it is a risk-management advantage.”
Read the 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.