Update on third-party credit servicing mandates
30 November 2020
Arrow Global wins third-party credit servicing mandates totalling £4.8bn in 2020 (year to date)
Arrow Global, a leading European investor and asset manager in secured and unsecured defaulted and non-core loan portfolios and real estate, is pleased to announce it has won a total of 16 material third-party credit servicing mandates from some of the world’s largest investors in the year to date, equating to £4.8bn of Gross Book Value. This does not include the value of outsourced arrears management contracts from UK high-street banks/non-bank lenders where volumes cannot be confirmed at this point. These mandates require up to 250 allocated, full-time resources to fulfil valuable, long-term partnership projects.
The servicing contracts have been predominantly awarded to Arrow’s businesses in the UK, Italy and Portugal where we have seen the swiftest loan owner response to recent economic conditions and a more proactive outsourcing and asset sale approach by banks, non-banks and sponsor sellers. Asset servicing mandates cover both secured and unsecured assets with an additional number of large master servicing mandate wins by our Zenith business in Milan. The wins build on Arrow’s established presence as one of the leading participants in European credit management, with over 15 years’ experience and more than £60 billion in assets under management. Given the macroeconomic environment, the Group continues to see scope for further contract wins, contributing to its capital-light Asset Management and Servicing revenues.
The news follows other recent success across the Group, including total capital commitments of €1.7bn to Arrow’s first fund, Arrow Credit Opportunities, dedicated to investing in performing and non-performing European credit sourced through our Fund and Investment Management business. Most recently, Arrow was recognised at the UK Credit Strategy Awards, winning in the Best Outsourcing & Partner Initiative with Virgin Money for the Onboarding & Customer Experience category.
Commenting, Lee Rochford, CEO at Arrow Global, said: “I am pleased that the Arrow Global servicing platforms have maintained their strong growth momentum and continue to secure high-quality mandates from across Europe. These contract wins reflect our leading, local expertise and recognise Arrow as a leading partner in servicing the increasing number of non-core and non-performing credit portfolios being created as result of ongoing economic dislocation.”
Nick Jones, Group Head of Corporate Communications
Tom Blackwell, Laura Ewart, Ambrose Fullalove
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 also generate revenues from managing and servicing assets on behalf of third parties.
Arrow’s Fund Management Business has total FUM of €4.2 billion as at November 2020.