Arrow Global is targeting €4bn (£3.4bn) for the latest vintage of its opportunistic credit fund, for which it has started raising this year, Alternative Credit Investor has learned.
The fund manager closed the previous fund in the series, ACO II, in 2023 with €2.75bn in commitments.
In an update in November 2024, the firm had said that it expects a 50 per cent increase in fundraising over a two to three year period driven mainly by ACO III, commencing in 2025.
Read more: Arrow Global appoints platforms chief executive to ‘drive performance’
The strategy focuses on opportunistic credit, investing across European nonperforming loans, non-core banking assets and select real estate-related assets acquired from distressed situations. The previous vintages, ACO I and ACO II had deal IRRs of 16 per cent and 20 per cent, respectively, back in November.
Read more: Arrow Global reports record origination as funds under management hit €10.5bn
Arrow Global declined to comment.
The pan-European asset manager has 24 asset management and servicing platforms, running approximately €110bn in assets under management.
In June 2024, it acquired real estate development firm Interboden to expand into Germany. Most recently, it entered the French market through the acquisition of debt collector iQera Group, which is expected to complete in the second quarter of the year.
