Arrow Global Group

Private credit origination isn’t one-size-fits-all – it’s a strategic differentiator. In this article, Arrow Global’s Toni McDermott unpacks the distinctions of different models, from centralised direct lending to decentralised, operationally intensive approaches. Arrow stands apart with a fully integrated, locally driven model that prioritises off-market residential real estate opportunities, where deep local expertise and operational agility translate into attractive risk-adjusted returns. “We have positioned ourselves to operate successfully in the highly fragmented European residential real estate market where the majority of our origination is off-market and where we believe the risk-return profile is most attractive.” “In Arrow, we operate as a single, vertically integrated firm, exclusively sourcing investments for our funds. This means that everyone, including our local platforms, benefits when our investments perform well and vice versa.” “We have set ourselves up to be an all-weather investor, with strong local expertise in real estate equity, lending and credit - primarily asset-backed by residential real estate.” Read on to explore how origination models shape investor outcomes, the role of AI in credit sourcing, and why Arrow’s strategic positioning makes all the difference.

Europe’s alternative credit market is full of opportunity – but also complexity. In the March issue of Alternative Credit Investor, Zachary Lewy shares his insights on how to succeed in this fragmented landscape. With over 25 years of experience, Zach has built Arrow into a leading pan-European investment manager, overseeing €110bn in serviced assets. He discusses the firm’s strategy for navigating shifting interest rates, unlocking mid-market opportunities, and staying ahead in private credit, lending, and real estate. #AlternativeCredit #PrivateMarkets #ArrowGlobal

We’re delighted to share that Arrow Global has been shortlisted as a finalist for Best In-House Tax Team at the prestigious Tolley’s Taxation Awards 2025. This recognition reflects the outstanding work of our Tax Team, who bring energy, expertise, and commercial insight to every part of our business across the world. From fund launches and strategic restructuring to seamless collaboration with teams across Legal, Finance, Treasury and beyond, they are the embodiment of ‘embedded and indispensable.’ Claire Ayres, Group Head of Tax, commented: “I’m incredibly proud of our team. This nomination is a testament to their technical excellence, adaptability, and unwavering commitment to being best in class. We don’t just advise, we partner, we innovate, and we deliver. I truly believe our tax team is something special.” Congratulations to all the other finalists. We look forward to celebrating with the best of the tax profession on May 8 at the Hilton Park Lane, London. #TolleyAwards2025 #TaxExcellence #ArrowGlobal #InHouseTax #TaxLeadership #TeamArrow

“In 2024, Arrow continued to build strong fundraising momentum, particularly within our discretionary real estate lending franchise, which has now secured over €1.1 billion in commitments. This was complemented by additional capital raised for our real estate equity strategy, reflecting sustained confidence from our global investor base. Our investment platform now comprises three fully established strategies – credit, real estate equity, and real estate lending – each leveraging our vertically integrated model and local sourcing capabilities. Over the year, we invested €2.1 billion and achieved €1.2 billion in realisations, demonstrating both the depth of our opportunity set and our disciplined exit execution. With €10.6 billion in Fund AUM and €110 billion in servicing AUM, our platform is positioned at scale, supported by a robust pipeline heading into 2025. We were also delighted to be named Distressed Debt & Special Situations Investor of the Year, Europe by Private Debt Investor. This prestigious award is a testament to the strength of our vertically integrated model, the expertise of our central and local teams, and our ability to consistently deliver value for our investors. Expanding our footprint, we strengthened our presence across three Western European markets, Germany, France, and Spain, enhancing access to highly granular, attractive investments. This positions us well to continue sourcing compelling, middle-market, asset-backed opportunities across Western Europe. Our scale, local presence, and strong investor support underpin our ability to deploy capital efficiently and deliver attractive, risk-adjusted returns.” Zachary Lewy, Founder, CEO, Chief Investment Officer Read the full announcement here https://bit.ly/4cuApIS

Meet the Arrow Team at Private Credit Canada 2025 Arrow Global will be in Toronto for Private Credit Canada, a premier event focused on key trends and opportunities in private credit. 15 April 2025, Ritz Carlton, Toronto, Canada Join us to connect, collaborate, and explore the latest opportunities in the major private credit segments including allocation trends, real estate debt, special situations, opportunistic and niche credit, and distressed. As part of the event, Adam Baghdadi, Managing Director, Credit and Lending, will lead a roundtable discussion titled: "The Case for Europe: Why is European Middle Market Asset-Backed Credit an Attractive Risk-Adjusted Opportunity." The session will explore the evolution of the European credit market, structural protections that mitigate risk, and the asset classes offering the best relative value.   Meet Our Team: Adam Baghdadi – Managing Director, Credit and Lending Reema Mukheja – Managing Director, Client and Product Solutions Carla Langerhorst – Director, Client and Product Solutions If you are attending and would like to schedule a meeting, please reach out to us.   Register here: Private Credit Canada 2025 https://lnkd.in/gZ6VA6Pd Learn more about Arrow Global: www.arrowglobal.net #PrivateCredit #AssetBackedLending #ArrowGlobal #PrivateCreditCanada

Private Debt 2.0: A New Era of Opportunity Read more at https://bit.ly/4hn73O6

As we head into 2025, one thing is clear: the landscape of private credit is transforming at an unprecedented pace. In Preqin’s latest Investor Outlook H1 2025, Arrow Global’s Zachary Lewy explores the seismic shifts driving this evolution – from the refinancing challenges of pre-2022 loans to the growing appeal of Southern Europe as an investment hotspot. With banks stepping back from traditional lending, private credit is emerging as the key player in bridging the financing gap, offering tailored solutions in a market hungry for capital. “Businesses, loans, and investments made before 2022 are facing significantly more challenges in today’s environment compared to those executed more recently. Trillions of euros in outstanding loans from this period are now approaching refinancing in a vastly different financial landscape.” “Historically, Northern Europe has commanded a significant premium over Southern Europe. However, since 2022, performance in the south has improved to the point where that discount is no longer justified.” “The more you examine private credit’s evolution, the clearer it becomes that the industry is developing on a solid foundation. The real question, then, is not whether private credit is sustainable – it’s whether it could be growing even faster.” Read Zach’s expert commentary to understand why transparency, risk-adjusted returns, and strategic market positioning are defining the next era of private debt https://bit.ly/4hn73O6

Richard Roberts and John Calvao will be speaking at the SmithNovak NPL Europe Conference, taking place on 20-21 March 2025 in London. Richard Roberts, Head of M&A and Market Coverage at Arrow Global, will be a featured panellist in "A Look Back at the Last 10 Years." He will join industry leaders to reflect on a decade of transformative deals, market milestones, and key trends that have shaped the European NPL space. John Calvao, Fund Principal at Arrow Global, will be a featured panellist in "The Next 10 Years." He will share insights into the future of NPLs, market evolution, and what lies ahead for banks, investors, and servicers over the next decade. NPL Europe brings together top investors, banks, servicers, and advisors to discuss the past, present, and future of the European NPL market. Join Richard, John, and other industry experts shaping the future of distressed assets. Register here: https://bit.ly/3Q1UjRs ir@arrowglobal.net #NPLEurope #SmithNovak #DistressedDebt #PrivateCredit #ArrowGlobal #Investing

Arrow Appoints Enrico Sanna as CEO Platforms We're excited to share that Arrow has announced the appointment of Enrico Sanna as CEO Platforms. A seasoned leader with nearly 30 years of experience in private credit, real estate, and financial services, Enrico will drive platform growth, operational efficiency, and stronger investor outcomes across Arrow's European markets. Enrico’s impressive track record includes founding and scaling FORA to a $2 billion valuation and leading operational excellence across a $40 billion portfolio at Deutsche Bank. His entrepreneurial vision and leadership will be instrumental in optimising Arrow’s platform strategy and delivering value to investors. Read the full announcement here https://bit.ly/408vyb8

"Liquidity is now beginning to return to retail real estate. Financing for acquisitions is becoming available, and as interest rates continue to fall, more capital is expected to follow." "At present, these centres can be acquired at highly attractive yields, making them a compelling opportunity for deep-value, opportunistic investors like us." "With a presence in eight European countries and €110 billion in assets under management – including assets we service for over 200 European banks – we can locally source these opportunities. In some cases, as a result of our credit servicing relationships, we are a logical buyer." In the PERE Retail Report, Zachary Vaughan, Global Head and Chief Investment Officer of Real Estate at Arrow Global, explores the resurgence of liquidity in the European retail sector and the compelling opportunities it presents for investors. As financing conditions improve and institutional interest returns, deep-value investors are finding attractive entry points in resilient retail assets. Zach discusses key market dynamics, including the impact of debt maturities, the strength of daily-needs retail centres, and the strategic advantages of a localised investment approach. Read the full article here https://bit.ly/4bAI88f