Arrow closes second credit opps fund on €2.75bn hard-cap

Arrow Global has held a final close of its second credit opportunities fund on its hard-cap of €2.75 billion.

The European-focused credit investor said it saw an almost unanimous re-up rate from investors in its first credit opportunities fund, which closed on €1.7 billion in late 2021.

It added a diverse range of new investors from the US, Europe and Asia-Pacific and said it saw particularly strong demand from LPs based in the Middle East. Institutions backing the fund include pension funds, insurance companies, endowments and family offices. The general partner also made a €275 million commitment.

Arrow Credit Opportunities II will follow the same strategy as its predecessor, seeking out proprietary off-market opportunities as auction prices tend to be higher. It will focus on the quality of underlying assets, with approximately 90 percent of the portfolio secured by real estate, cash in court or other mixed securities.

“Having 18 local specialist platforms in our five chosen European geographies and €79 billion AUM gives us an unparalleled opportunity to see and invest into the most interesting opportunities,” said Charlotte Gilbert, managing director of client and product solutions at Arrow Global.

The fund will be managed by AGG Capital Management Limited, a Jersey-incorporated, wholly-owned subsidiary of Arrow Global.