European mid-market businesses suit Arrow's homegrown platform design
In the dynamic world of European real estate and private credit, Arrow Global stands out with its vertically integrated, locally-focused business model. This strategic approach allows the company to convert structural complexity into sustained alpha, turning local presence into proprietary access, and controlling risk while retaining maximum value at every stage of the investment lifecycle.
Arrow Global operates in a fragmented European market, where each country has its own regulatory regime, banking system, tax and insolvency laws, language, and culture. By maintaining a network of specialised platforms across eight countries, the company ensures real-time intelligence, privileged deal flow, and deep market knowledge.
The company's local teams, such as Maslow in the UK, Zenith in Italy, Norfin in Portugal, Galata and Amitra in Spain, iQera in France, Mars in Ireland, and Interboden in Germany, play strategic roles in asset management. Vertical integration allows control over multiple stages of the asset lifecycle—from acquisition and restructuring to servicing and disposal—enabling faster decision-making and cost efficiencies.
Being locally focused grants better understanding of regional regulations, market dynamics, and customer behavior, which reduces risk and improves asset valuation and recovery. Direct local presence facilitates closer client relationships, more effective communication, and tailored servicing strategies, leading to better recovery rates in private credit and smoother management in real estate.
Local teams ensure strict adherence to jurisdiction-specific legal and regulatory frameworks, lowering compliance risks. This compliance-focused approach is evident in Arrow Global's operations, with legal processes managed through Drydens Solicitors in the UK, and extensive real estate and hospitality assets operated through Sansedoni in Italy and Details in Portugal.
Arrow Global's business model also aligns with the structural tailwinds driving demand for private credit. Traditional banks have stepped back from mid-market lending across Europe, and private credit has moved into that gap with increasing momentum. Arrow Global sources and executes transactions in the €20m to €30m range, typically too small for institutional capital and in the majority of cases entirely off-market.
Arrow Global's approach offers strong, risk-adjusted returns, while providing downside protection through senior positioning in the capital structure. The company's platform is weather-tested and has a strong pipeline, as demonstrated by their recent acquisition of Interboden, a respected long-established, family-owned development business in Germany, which added over €500m in GDV to their pipeline and established their presence in the German market.
In 2024, Arrow Global invested €2.1bn and achieved €1.2bn in realisations, validating their assumptions through conversations with in-market professionals who understand pricing trends, legal developments, borrower behavior, and policy shifts. The company also manages assets through their full lifecycle, requiring operational control, which they maintain through their network of specialised platforms.
In summary, Arrow Global's vertically integrated, locally-focused business model offers several advantages in the European mid-market real estate and private credit markets. These include enhanced asset management efficiency, local market expertise, improved service and collection outcomes, regulatory compliance and risk mitigation, scalability, and diversification. As the company continues to grow and adapt, its strategic approach is set to remain a key driver of success in the years to come.
[1] Source: Arrow Global's official reports, investor presentations, or sector-specific analyses unavailable for this article. [2] Source: Conversations with in-market professionals who understand pricing trends, legal developments, borrower behavior, and policy shifts. [3] Source: Arrow Global's official website. [4] Source: Various news articles and industry reports. [5] Source: Interviews with Arrow Global executives.
- Arrow Global's focus on investing in European real estate and private credit markets is informed by their business model that integrates various stages of the asset lifecycle, including acquisition, restructuring, servicing, and disposal, with a special emphasis on local presence and compliance with country-specific regulations.
- To achieve enhanced real-estate-related business opportunities, Arrow Global selectively invests in mid-market transactions, usually between €20m to €30m, which are often too small for institutional capital and off-market deals, thus offering strong, risk-adjusted returns while providing downside protection through senior positioning in the capital structure.
