Arrow Global has secured €4.2bn (£3.7bn) of commitments for European private credit and real estate strategies from institutional investors, including the Canada Pension Plan Investment Board (CPPIB).
The €125bn pan-European investment manager announced today (21 October) that it has completed the final close of its Arrow Lending Opportunities Fund I (ALO) at €1.5bn, alongside €2.7bn raised for its European credit opportunities and related credit strategies.
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The lending opportunities fund provides real estate-backed financing solutions and has received commitments from a mix of investors, including €400m from a wholly owned subsidiary of the Abu Dhabi Investment Authority. The fund exceeded its original fundraising target of €1bn.
“Achieving a final close of €1.5bn for ALO, surpassing our original target and securing commitments of €2.7bn into our expanding credit strategies demonstrate the trust our investors place in Arrow,” said Zach Lewy, founder, group chief executive and chief investment officer of Arrow Global. “As traditional lenders continue to retreat, private credit plays an increasingly central role in financing Europe’s real estate and credit markets.”
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For its European credit strategy, focused on asset-backed credit in Western Europe, the manager received a €300m commitment from CPPIB Credit Investments, a wholly owned subsidiary of the CPPIB.
Lewy added: “Our structural advantage across Europe’s asset-backed mid-market, combined with our proven granular execution capability, gives us access to opportunities typically out of reach. Our investors are the ultimate beneficiaries of that differentiated position.”
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