18th Dec 2019 11:03
(Alliance News) - Credit management services provider Arrow Global Group PLC on Wednesday unveiled a "transformational" EUR838 million fundraise.
Arrow Global has raised EUR838.0 million, with EUR628.5 million of that coming from third-parties, including "some of the largest and most sophisticated" global investors.
The money will be used to set up a new fund which will invest in European credit. It is targeting EUR2.0 billion of assets under management by the end of 2020.
Arrow Global itself will invest at least either 24.9% of the final commitment made to the fund or EUR500 million.
"This first successful fund raising is transformational for the group. It shows we are successfully executing our strategy to transform the business through the build-out of our fund management capabilities," said Chief Executive Lee Rochford.
"This represents the completion of a significant initial stage of this strategy and part of our continued drive to engage with capital partners and grow our assets under management. I have been impressed with the speed of execution of this fund raising, driven by strong demand from institutional investors and the fantastic efforts of the Arrow Global team," he continued.
The new fund is part of a move towards a more capital-light business model, Arrow Global said, which will help the company reduce debt more quickly and increase flexibility.
Shares in the company were 10% higher on Wednesday morning in London at a price of 248.00 pence each.
By George Collard; [email protected]
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