Arrow is a leading investor and asset manager in European non-performing loans (NPL) and non-core assets, operating a network of asset management platforms in Western Europe. Since 2020, Arrow has operated a third-party fund management business, successfully raising two flagship funds and launching two adjacent strategies in real estate lending and equity.
Initial investment
2021
Sector
Financial services
Initial transaction size
£1.8bn
TDR’s prior experience investing in the non-performing consumer debt space gave us the appetite to work with another business in this sector. We knew Arrow had potential, and built a thesis over time, centred around its highly differentiated origination platform and strong returns’ track-record.
Alongside Arrow’s Founder, we shared a vision to take the company private and reposition it as a vertically integrated fund manager.
Arrow has been successfully repositioned in line with our thesis. Arrow now services approximately €125 billion of AuM and operates across various niche and high returning asset classes in Europe (e.g. real estate and specialist non-performing assets) which generates a diverse range of higher-quality income streams, while enabling the firm to remain capital-light.
The firm’s flagship opportunistic credit strategy has been highly successful, with strong deployment and returns. Strengthened by the acquisition of Maslow, Arrow has also expanded into real estate lending.
A number of bolt-on acquisitions have been completed to support both geographic diversification and build-out of new strategies, while several non-core platform disposals have allowed Arrow to better focus on asset-backed opportunities.