Opportunistic Credit

Our strategic advantage in opportunistic credit

 

Arrow’s proprietary investment strategy is strategically positioned to capitalise on European non-performing loans (NPLs), non-core banking assets, and select real estate-related assets acquired from distressed situations. This approach takes advantage of Arrow’s extensive network and local expertise, offering a unique entry into an attractive investment market.

 

Opportunistic Credit Strategy

Arrow’s investment strategy is designed to focus on opportunistic, off-market opportunities within its core European geographies. By leveraging a distinctive business model and partnering with local credit servicers, Arrow ensures an exclusive pipeline of off-market deals. This not only provides a local knowledge advantage but also enhances its capability to selectively access and manage assets effectively.

Market Opportunity

Europe presents a large, fragmented market characterised by historical inefficiencies that produce a high volume of non-core and non-performing credit assets. The market is ripe for the investment into secondary market volumes, where other NPL managers look to divest their portfolios in search of liquidity. Additionally, the current economic climate of elevated interest rates and refinancing pressures contributes to localised market dislocations, increasing the demand for liquidity and creating further opportunities for Arrow.

Platform and Track Record

As a leading pan-European asset manager, Arrow boasts a strong track record in private debt management. With 12 specialised credit platforms across Europe, and approximately €80 billion in assets under management, Arrow’s operational footprint is supported by over 1,400 professionals. This extensive network underpins Arrow’s operational efficacy and market reach.

Competitive Advantage

Arrow’s local platform franchise model is perfectly suited to exploit these market opportunities. With over a decade of experience in identifying platforms that offer access to high-value, niche market areas, Arrow’s strategy is predicated on granular, local sourcing. This approach, coupled with strong on-the-ground origination capabilities and robust local relationships, ensures strong risk-adjusted returns.

 

Our point of view

Our local platforms have unparalleled visibility on NPLs, single-name distressed opportunities, and special credit opportunities backed by hard assets, where we can value, access, and add value to underlying collateral.