Arrow Global, a leading European investor and alternative asset manager in credit and real estate, today announces the creation of a dedicated corporate restructuring business to cater to the growing market opportunity in Portugal.
The new business builds on Arrow Global’s market-leading experience and capabilities in Portugal through its Whitestar and Norfin servicing and asset management businesses and its broader capabilities across Europe. It will cater to single name restructuring cases in the region that are currently held up in the banking sector due to complexity – whether in unlikely to pay (UTP), non-performing loan (NPL) or bankruptcy situations. Arrow Global will own the dedicated unit, deploying Arrow’s Credit Opportunities Fund capital alongside its institutional clients, as well as being a third-party servicer.
Launching in early January 2022, the new business will be led by CEO Paulo Barradas, currently chief transaction officer at Norfin, supported by senior hires bringing M&A and restructuring skills from within the Arrow Global group and external sector specialists. Pedro Ruas will join as a senior advisor to the platform bringing over 25 years’ experience, working with the likes of Davidson Kempner, KKR, Anacap and Carval.
They will be supported by Arrow’s head of origination in Portugal André David Nunes, who works closely with major Portuguese banks on behalf of Arrow’s platforms and clients, and João Bugalho, Arrow Portugal and WhiteStar CEO.
The new business will follow a tried and tested model for Arrow Global and its launch follows the successful growth of Arrow’s Europa Investimenti business in Milan, which specialises in bankruptcies, UTP and special situations in Italy.
Commenting on the new business, Paulo Barradas, CEO, said: “There is a significant and growing opportunity in the Portuguese market and Arrow’s deep-rooted expertise in the region means it is well placed to capitalise and offer clients strong investment outcomes. In launching this new business, Arrow is channelling its strong asset management experience with a broad range of origination contacts at banks in the region to tap into this growing market of under-serviced portfolios.
“Portugal represents a key market for Arrow Global as we look ahead at our pipeline. We are already assisting some corporates in distress or in difficulty in various sectors, and we will assist a lot more next year. The banks have learnt from the financial crisis and want to identify the problematic or potentially problematic situations in time and don’t want the NPL exposure they did in the past. This brings a significant risk factor banks must contemplate, restructuring their options and presenting specialists like Arrow with a clear path in as a supportive partner to corporates in distress.”