Asset origination
Our ability to deploy across a breadth of asset classes and sub-classes is a powerful differentiator. We have a track-record across each of these high value segments with the talent, technology and off-market origination capability which collectively drives our overall portfolio returns.
- Unique market access through our Platforms’ in-country origination network
- 80%+ investments originated off-market
Our point of view
This high fragmentation of different types of distressed assets allows us to hone in on and dominate a number of high value niches with strong return profiles.
Asset underwriting
We have a strong track record of delivering high returns in excess of original underwrite.
Back book built on UK unsecured data advantage
Local expertise and data in new geographies
Prudent underwriting across multiple asset classes
Consistent underwriting outperformance over 18 years
106% cumulative underwriting performance over time
Arrow has a significant data and tech advantage – 35 million data records
Propriety data set + local expertise and data in new geographies + conservative approach to underwriting = consistent underwriting outperformance over 18 years.
- Proprietary data set of 10m customer accounts and over 35m data records built over 15 years of collection data
- In-house platforms, with c. €80bn of assets under management provide insight into asset performance to complement analytical approach
- Centre of excellence in underwriting and analytics in Manchester & London (UK), coupled with specific local in-country expertise to give significant benefit of single country approach
- Access to credit bureaus (UK & Ire, Netherlands, Italy) and central bank (Portugal) to supplement proprietary data
- Collections to date at 106% vs original underwriting
- Forecasted write-offs1 of sub 1.5% vs. €3.8bn2 capital invested since 2010
1. Write-offs are calculated as the shortfall in deal-by-deal lifetime distributions (pre-management fees, carried interest and fund level expenses) vs the investment amount for each portfolio investment – based on Arrow modelled results, using collections to date, future cash flow projections and allocated costs (based on today’s platform). See ‘Past performance’ disclosure and ‘Model Results’
2. Denotes Total Arrow balance sheet and ACOI Investments up to 30/06/2022.
Our point of view
Our forensically driven underwriting capability comprises c. 2,000 people on the ground, 18 servicing platforms, industrial scale data records and technology for strong, predictable returns from a highly diversified asset mix.
Asset servicing
Our in-country servicing platforms provide us with knowledge and relationships that is difficult to replicate without being an ‘owner-operator’.
UK + Ireland
6 platforms 540 professionals
Netherlands
4 platforms 310 professionals
Portugal
5 platforms 920 professionals
Italy
4 platforms 280 professionals
5 countries, 19 platforms, c. 2,000 professionals operating in multiple asset classes
Our servicing businesses employ over 2,000 people and service assets on behalf of Arrow, banks and other distressed debt funds. These local businesses provide proprietary insight into a diverse range of assets at a highly granular level.