Arrow Global Group has secured a combined €4.2 billion in institutional capital across its private credit and real estate platforms, marking one of its most significant fundraising achievements to date and signaling sustained investor conviction in European asset-backed opportunities. The firm, which operates as a pan-European investment manager, continues to expand its lending and credit strategies amid tightening credit availability across the continent.
Arrow completed the final close of its Arrow Lending Opportunities Fund I at €1.5 billion, exceeding the original €1 billion target and establishing a significant milestone for the firm’s European real estate lending strategy. The fund aims to address the growing demand for flexible real estate-backed financing, a need heightened by constrained bank lending conditions. The final close drew commitments from a diverse global base of institutional investors, such as pension funds, insurance companies, sovereign wealth funds, and endowments across Europe, North America, and Asia.
The firm also received a $400 million commitment from a wholly owned subsidiary of the Abu Dhabi Investment Authority, one of the most significant global private credit allocations announced in 2024. Arrow highlighted this commitment as evidence of its ability to foster long-term relationships with leading international institutions.
In addition to the ALO Fund I close, Arrow has raised €2.7 billion for its European credit opportunities and related credit strategies. These commitments reflect continued investor appetite for resilient, asset-backed credit instruments, particularly in Western Europe. A €300 million commitment from CPPIB Credit Investments Inc., part of Canada Pension Plan Investment Board, further deepened an existing strategic relationship between the firms.
Arrow attributes the momentum in its credit strategies to structural market conditions, including increased regulatory complexity, reduced bank participation, and the growing need for specialized underwriting capabilities. With 25 local investment and servicing platforms across Europe and more than 4,700 employees, the firm maintains a broad origination and asset management footprint, enabling it to deploy capital at scale.
Executives at Arrow note that the continued withdrawal of traditional lenders is creating an expanded opportunity set for private credit providers. The firm’s integrated platforms and on-the-ground presence enable it to pursue granular transactions that are often inaccessible to larger or more generalist investors. According to Arrow, this structural advantage enhances its ability to deliver risk-adjusted returns for institutional partners seeking exposure to secured, asset-backed credit.
The latest fundraising achievements follow a period of heightened demand for private credit strategies across Europe, driven by market dislocation, rising interest rates, and increased complexity in real estate and corporate financing. Arrow’s ongoing expansion of its lending and credit platforms signals its intention to remain a leading participant in Europe’s evolving private credit landscape.
KEY QUOTES:
“Achieving a final close of €1.5 billion for ALO, surpassing our original target, and securing commitments of €2.7 billion into our expanding credit strategies demonstrates the trust our investors place in Arrow. That trust is built on our disciplined approach, deep sector knowledge, and strong local expertise.
As traditional lenders continue to retreat, private credit plays an increasingly central role in financing Europe’s real estate and credit markets. We are well-positioned to capitalise on these opportunities and to deliver compelling, risk-adjusted returns for our investors, who we view as long-term partners in our strategy. Our structural advantage across Europe’s asset-backed mid-market, combined with proven granular execution capability, gives us access to opportunities typically out of reach, and our investors are the ultimate beneficiaries of that differentiated position.”
Zach Lewy, Founder, Group Chief Executive Officer and Chief Investment Officer, Arrow Global
