Debt purchaser Arrow Global has announced a fundraising round that amassed nearly €630m from investors for an inaugural pan-European NPL fund.
Arrow Credit Opportunities SCSp and related entities raised €628.5m of third-party commitments into an eight-year, closed-end fund structure, drawing from global investors in diverse geographies and sectors. Combined with Arrow’s own commitments, the fund will draw on €838m in total and the group is targeting €1.5bn of third-party investments before the end of 2020.
The transformational venture will provide additional asset management and servicing (AMS) revenue, along with fund management fee income, to the group.
Arrow said that raising the fund is a major achievement in the development of its fund management capabilities and is central to the group’s strategy to accelerate towards a more capital-light model.
Lee Rochford, group chief executive of Arrow Global, said: «This shows we are successfully executing our strategy to transform the business through the build-out of our fund management capabilities».
«This represents the completion of a significant initial stage of this strategy and part of our continued drive to engage with capital partners and grow assets under management. I have been impressed with the speed of execution of this fund raising.»
Original Story: Credit Strategy | Marcel Legouais
Photo: Arrow Global site
Edition: Prime Yield