Arrow Global in £15.5m swoop for UK and Ireland mortgage business
Manchester-based purchaser and manager of debt Arrow Global has announced the proposed acquisition of Mars Capital’s Ireland and UK mortgage servicing business for £15.5m.
The company says the deal further strengthens Arrow Global’s asset management capabilities and reinforces its leading position in the UK, while providing a strategic entry into Ireland, a new market for the group that offers significant debt purchasing and servicing potential.
Arrow Global is also trumpeting the establishment of a strategic partnership in the UK and Ireland with Oaktree Capital Management, a global asset manager with around $100bn under management.
Meanwhile, interim results for the six months to June 30 show the company’s underlying profit after tax has grown 35.5% to £25.8m and revenue grew 47.6% to nearly £150m.
Arrow Global chief executive Lee Rochford said: “We are delighted to announce the proposed acquisition of Mars Capital’s UK & Irish mortgage servicing businesses as well as our strategic partnership with Oaktree.
“These agreements expand our European footprint, augment our capital-light asset management capabilities, provide further impetus to our profitable growth trajectory and are completely aligned with our strategic direction.
“We are seeing marked demand for servicing solutions that meet the diverse requirements of multi-asset and multi-jurisdictional credit portfolios. Mars Capital adds depth of expertise in the secured real estate market to our servicing offering and we see clear opportunities to offer this across our existing client base.
“The acquisition also opens up the Irish market, one of Europe’s largest NPL and servicing markets. With our leading positions in the UK, Portugal, The Netherlands and our recent entry into Italy we continue to see the benefits of geographic diversification. There remain opportunities for growth across the European marketplace.
“The strategic partnership with Oaktree demonstrates our innovative origination capabilities. The partnership will provide significant portfolio investment and asset management opportunities going forward in the UK and Ireland, strengthening Arrow Global’s highly visible earnings stream.
“We are excited by these opportunities and we look forward to welcoming the Mars Capital team to Arrow Global.”
