Arrow Global reportedly looking at IPO

ARROW Global, the fast growing Manchester company, which buys up chunks of debt from lenders keen to remove it from their balance sheets, could be set to float according to reports.

Arrow, which is part-owned by Royal Bank of Scotland’s private equity vehicle RBS Special Opportunities Fund and its management team, could IPO this year, according to Sky News.

Based at Belvedere, Booth Street, Arrow Global has around 100 staff. It was one of the winners at the EY Northern Entrepreneur of the Year awards, last week. In January it successfully raised £220m on the bond market.

According to Sky News investment banks including Goldman Sachs, Canaccord Genuity and Lazard are understood to have been lined up to work on a flotation.

The company is run by founder Zach Lewy, a Princeton-educated executive and Tom Drury, the former chief executive of North West-based business process outsourcing company Vertex and Shanks, the waste management group.

The pair met when Vertex bought out Mr Lewy’s business, 7C in 2002.

Arrow Global’s chairman is Sir George Mathewson, the former chief executive and chairman of RBS.

The company’s asset portfolio consists of consumer and commercial credit including credit card, personal loan, retail, motor, mortgage, telecommunication and utility receivables.

More than 80 per cent of its £8.5bn-worth of assets are in the UK with the remainder in continental Europe.

The business buys outstanding consumer debt at a discount from lenders who have written it off, then collects it.

Arrow Global declined to comment on the speculation relating to the IPO.