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.

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, 19 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’.

Map of Europe

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.

Credit cards

Loans

Motor

Residential

CRE

REOs

Buy-to-let

Student loans

1st line mortgages

2nd line mortgages

Retail

CQS

Other real estate

SME