Arrow Global accelerates push into Iberian private and real estate debt

May 13, 2024 (Preqin News) – European fund manager Arrow Global, a vertically integrated alternative asset manager specializing in private credit and real estate, has acquired Amitra Capital from CPP Investments, which invests funds from the Canada Pension Plan.

Amitra Capital was founded in 2019 and now has offices in Madrid and London. It specializes in managing European non-performing loans (NPLs) and real estate investments, with assets under management (AUM) of over €4bn ($4.3bn).

‘This acquisition builds on our existing presence in Spain alongside our other operations, including Elba Finance and Galata. It also sets the stage for a broader strategic partnership with CPP Investments,’ said Zach Lewy, Founder, CEO, and CIO of Arrow Global, in a statement. Arrow Global has €80bn ($86.4bn) of AUM and has invested in several platforms in Portugal, including real estate firm Norfin, corporate restructuring company Restart Capital, and hotel outfitter Viriato.

In an article for Preqin’s Investor Outlook H1 2024, Lewy wrote that while rising interest rates have boosted the whole private debt asset class, the best returns are to be found in underserved niches.

‘The returns are partly because the rising tide of rates has floated all boats, but also because the way that the market has evolved and matured means there are private debt firms with very strong market leadership,’ says Lewy.

‘The key for us is picking those parts of the market where supply and demand are in our favor, which means identifying sectors and sub-sectors in particular markets, such as agricultural lending, affordable housing, construction, or bridge lending. Once you’ve picked categories where you feel good about supply and demand, you can gain exposure and lend on sensible terms.’

Arrow is not the only manager strengthening its private debt operation by acquisition to capitalize on strong investor demand. Paris-headquartered Sienna Investment Managers bought Milan-based private debt specialist Ver Capital in April, bringing the two entities’ combined private debt AUM to roughly $3bn. In February, French asset management giant Amundi acquired Zurich-based private markets specialist Alpha Associates, which has €8.5bn ($9.2bn) of AUM, for €350mn ($378.1mn).

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