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rrow Global Group has amassed €4.2 billion in institutional capital across its private‑credit and real‑estate platforms, one of the firm’s largest fund‑raising milestones and a clear sign of enduring investor confidence in European asset‑backed assets. The pan‑European manager is broadening its lending and credit strategies as credit availability tightens across the continent.

    The Arrow Lending Opportunities Fund I closed at €1.5 billion, surpassing its €1 billion goal and marking a significant achievement for the firm’s real‑estate lending arm. The fund targets the rising demand for flexible, real‑estate‑backed financing amid constrained bank lending. Commitments came from a diverse global pool of institutional investors, including pension funds, insurers, sovereign wealth funds, and endowments from Europe, North America and Asia.

    A $400 million pledge from a wholly‑owned subsidiary of the Abu Dhabi Investment Authority represents one of the largest private‑credit allocations announced in 2024. Arrow highlighted this as proof of its ability to build long‑term relationships with leading international institutions.

    In addition to the ALO I close, Arrow raised €2.7 billion for its European credit opportunities and related strategies, reflecting sustained appetite for resilient, asset‑backed credit, especially in Western Europe. A €300 million commitment from CPPIB Credit Investments Inc. deepened an existing strategic partnership with the Canada Pension Plan Investment Board.

    Arrow attributes its credit momentum to structural market shifts: increased regulatory complexity, reduced bank participation, and a growing need for specialised underwriting. With 25 local investment and servicing platforms across Europe and more than 4,700 employees, the firm maintains a wide origination and asset‑management footprint, enabling large‑scale capital deployment.

    Executives note that the retreat of traditional lenders expands opportunities for private‑credit providers. Arrow’s integrated platforms and on‑the‑ground presence allow it to pursue granular transactions often out of reach for larger, generalist investors, enhancing its ability to deliver risk‑adjusted returns for institutional partners seeking secured, asset‑backed credit.

    The latest fundraising comes after a surge in demand for private‑credit strategies across Europe, driven by market dislocation, rising rates and increased complexity in real‑estate and corporate financing. Arrow’s continued expansion signals its intent to remain a leading player in Europe’s evolving private‑credit landscape.

    **Key Quotes (paraphrased)**

    “Closing ALO I at €1.5 billion and securing €2.7 billion in credit commitments shows the trust investors place in Arrow. That trust stems from our disciplined approach, deep sector knowledge and strong local expertise.”

    “As traditional lenders withdraw, private credit becomes central to financing Europe’s real‑estate and credit markets. We are positioned to capture these opportunities and deliver compelling, risk‑adjusted returns for our long‑term partners. Our structural advantage across Europe’s asset‑backed mid‑market, combined with proven granular execution, gives us access to deals typically beyond reach, benefiting our investors.”

    — Zach Lewy, Founder, Group CEO and CIO, Arrow Global