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Participated by some of the world’s largest investors, the new fund from Arrow (who is also a co-investor, with a 24.9% share) starts off with an initial funding of 838 million euro.
Portugal, where it owns servicer Whitestar and fund management company Norfin, might be one of the target markets for this new fund, which will have a duration of eight years.
In a release, Arrow Global’s CEO, Lee Rochford, explained that the creation of the new vehicle «represents the end of the first stage of the group’s strategy and the beginning of a second stage, which will consist in reinforcing the relation with investors, while increasing the assets under management at the same time».
The national NPL market has been registering a strong dynamism in the last few months, as a result of the effort carried out by the main banks in order to reduce their portfolios’ exposure to these problematic assets – which is, it should be mentioned, a requirement from the European regulator.
The latest data available shows that the Portuguese banks have already sold 5.000 million euro in NPLs, this year alone, to which should be added the 800 million euro from ongoing operations. Amongst the most iconic deals for 2019, the sale of Nata 2’s portfolio by Novo Banco, a portfolio estimated at 1.300 million euro, stands out.