Further capital raised for pan-European NPL fund
Arrow Global Group announces €0.3bn of further capital raised for its inaugural
pan-European NPL fund
€1.5 billon of total capital now committed to Arrow Credit Opportunities
Arrow Global Group plc (“Arrow”, and together with its subsidiaries the “Group”), a leading European investor and alternative asset manager in non-performing and non-core loan portfolios and real estate assets, is pleased to announce that it has held a third close of its inaugural closed-end fund Arrow Credit Opportunities SCSp (the “Fund”).
An additional €0.3bn of capital commitments has been raised, bringing total capital commitments to €1.5bn. This latest raise includes €75m from Arrow whichhas committed to invest capital amounting to 25% of the total commitments to the Fund alongside other investors. The third close has drawn strong interest from a diverse range of global investors. The Fund now includes commitments from the US, Netherlands, Canada, Switzerland, Germany, Italy, the Nordics and Asia.
Arrow is now focused on deploying the fund, capitalising on opportunities in the already attractive NPL market, which have been heightened by the economic dislocation caused by the Covid-19 pandemic.
The Fund represents an important part of Arrow’s strategy to transition the business to have a greater focus on high-margin, capital light, revenues. It also provides Arrow with a significant opportunity to grow its capital light asset management and servicing activities (‘AMS’) through the offering of AMS services to the Fund.
Lee Rochford, Group Chief Executive Officer of Arrow Global, said:
“Our first Fund represents a pivotal moment in Arrow’s evolution into an alternative asset manager and we are extremely pleased by the strong demand we have seen from a range of leading institutional investors. The additional €300m in commitments is especially encouraging given the highly challenging fund-raising environment. Our focus now is on deploying the proceeds into the attractive investment opportunities we have identified within our market, which have increased substantially as a result of the economic dislocation caused by the Covid-19 pandemic. We are very proud of the progress we have achieved so far in the building out of our Fund Management Business and remain excited by its long-term potential to transform our business. We look forward to further updating our investors on the economics of the Arrow Credit Opportunities fund at our Q3 results.”
Zach Lewy,Founder and Chief Investment Officer, said:
“We are delighted by the response we have received from investors and understand that the amount raised for our Fund makes it among the largest ever first time raises in the European private credit markets.
“Our analysis shows that the current economic conditions we are experiencing will drive a significant increase in the volume of banking balance sheet assets sold into the market, creating an attractive market opportunity. We believe that Arrow’s unique platform, skillset and market position means we are well placed to deploy capital into this opportunity and deliver highly attractive returns for our investors.”
AGG Capital Management Limited (“AGG Capital Management”), a Jersey-incorporated and wholly owned subsidiary of Arrow Global, serves as portfolio manager to the Fund.
For further information:
Duncan Browne, Head of Investor Relations
Nick Jones, Group Head of Corporate Communications
0203 727 1051
About Arrow Global
Established in 2005, Arrow Global is a European investor and alternative asset manager specialising in non-performing and non-core assets. We identify, acquire and manage secured and unsecured loan and real estate portfolios from and on behalf of financial institutions, such as banks, institutional fund investors and specialist lenders.
We play an active role in helping financial institutions reduce their balance sheets and recapitalise in order to increase mainstream lending. By purchasing and managing non-performing loans and other non-core assets, we provide valuable capital and expertise to a growing European market. We are a regulated business in all five of our European markets.
We invest in this asset class through our fund management business as well as directly and generate revenues from managing and servicing assets on behalf of third parties.
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