Manchester-based distressed debt trader Arrow Global Limited has announced it is opening an office in Luxembourg in order to benefit from the Grand Duchy’s position as a global investment fund hub and to put in place “the optimum infrastructure” to support investment strategies for its debt funds.
Arrow, known as investor and alternative asset manager in non-performing, non-core and real estate assets, said the new office will initially be made up of a Fund Treasury team with Arrow keen to build a multi-disciplinary team over the next 24 months. The firm was established in 2005 and had assets under management of 4.4 billion euro at the end of April.
A company filing in the Luxembourg Business Register dated on 20 April 2022 shows the company has registered a subsidiary as Arrow Securities SA in Luxembourg, with an office at Côte d’Eich in the heart of the city centre.
Credit opportunities
“The opening of this local office will allow the group to deliver optimum infrastructure to this and future investment vehicles,” it said in a statement. “This is supported by Luxembourg’s position as an economic and trading centre of global importance with a strong network of specialist service providers.”
Luxembourg’s regime for debt trading has become more attractive after its parliament in February approved a new securitisation law that enables the active management of debt pools such as Collateralised Loan Obligations, known as CLOs.
The firm said its “Arrow Credit Opportunities 1 fund”, known as ACO 1, is already located in Luxembourg. The fund holds 1.7 billion euro in total capital commitments. The company has said it plans to launch three additional ACO funds in the coming years. AGG Capital Management, which serves as the fund and investment manager, will remain based in Jersey.
Arrow said it “ continues to deploy ACO 1 at pace across high-return European credit and real estate opportunities.” The opening of the new office will help it future-proof investment strategies via scalable and efficient fund administration operations.
Identifying best risk-adjusted returns
“The opening of this new office supports our Luxembourg-based Fund vehicles,” said Andrew Grimditch (pictured), Arrow Global’s CFO, in a statement. “Our local platform strategy that allows us to identify the best risk-adjusted returns across our key markets also extends to our fund administration and operational services. We look forward to growing our specialist team in Luxembourg and wish our new employees the very best of luck in their new home.”
With some 2,500 employees worldwide, Arrow’s business model is to identify, acquire and manage secured and unsecured loan and real estate portfolios from and on behalf of financial institutions, such as banks, institutional fund investors and specialist lenders. Arrow purchases and manages non-performing loans and other non-core assets.