Arrow Global in double Portugal swoop
ARROW Global, the data-driven debt purchase and recovery specialist, has made two acquisitions and agreed a strategic partnership in Portugal.
It is the Manchester company’s first major acquisition beyond these shores, though it has been active in Portugal for some time.
The deals strengthen Arrow’s relationship with CarVal, a global alternative investment fund manager focused on distressed and credit-intensive assets, which has been its partner in Portugal since 2010.
The two organisations have agreed a strategic origination and five-year servicing partnership, and also for Arrow Global to buy Whitestar Asset Solutions , a leading Portuguese servicer of secured and unsecured loans, from funds managed by CarVal for a total consideration of €47.8m (£34.7m) payable over two years.
Arrow Global is also buying Gesphone – a Portuguese servicer of non-performing loans, and €77m face value of portfolios for a consideration of €8.3m (£6m) payable over four years.
Tom Drury, chief executive officer of Arrow Global said: “The acquisitions announced today reinforce Arrow Global’s position as a market leader in Portugal with over €5.5bn face value of assets under management, established franchises, a leading domestic servicing capability, experienced management teams and a strong pipeline for further portfolio purchases.
“By partnering with CarVal we strengthen our combined client offering, drawing on the skill and expertise of both organisations. Today’s announcement sees both parties share servicing and origination activities. In addition we have also acquired one of Arrow Global’s major Portuguese servicers, Gesphone.
“We believe Portugal is a particularly attractive market with strong growth characteristics. These acquisitions build on our established presence and enable us to offer an attractive full-service proposition to clients.
“In line with our strategy of geographic expansion and entering new asset classes, these platform acquisitions provide us with the expertise to purchase and service secured and unsecured loan books in Portugal, enabling Arrow Global to benefit both from portfolio returns and from additional servicing profits.”
Arrow will now have around 340 employees in Portugal and will have strong expertise in consumer loan servicing, secured asset servicing and securitisation.
The acquisitions will be financed from Arrow Global’s existing resources. At the same time, Arrow Global has increased its 2019 revolving credit facility from £100m to £140m on the same terms to provide headroom for future investment.
