Real Estate Lending

Our strategic advantage in real estate lending

Arrow’s proprietary strategy in the lending sector focuses on secured credit opportunities within the living sector across its European geographies. By offering full life-cycle real estate lending solutions, Arrow effectively addresses the capital needs of real estate investors and developers with a flexible, performing credit approach designed to deliver market-leading, risk-adjusted returns. This strategy is underpinned by specific ESG considerations, ensuring responsible and sustainable decision-making throughout the investment process.

Lending Strategy

Arrow targets proprietary, secured credit opportunities in the residential and living sectors, with a strong emphasis on flexibility to meet evolving market demands. The firm focuses on providing capital solutions that are secured against residential collateral, including Development loans, Bridge loans, and Term mortgages.

Arrow’s approach is built for adaptability, offering tailored financing that helps high-quality borrowers across Europe navigate today’s shifting real estate landscape. This strategy is supported by:

• €13+ billion in assets under management (AUM)
• 7 local platforms across Europe
• 800+ professionals

Market Opportunity

The European real estate sector continues to offer attractive lending opportunities, particularly as banks retreat due to regulatory pressure and capital constraints. Key drivers of opportunity include:

• High demand for development and refurbishment projects in the living sector
• Macro tailwinds such as urbanisation and housing shortages
• High base interest rates translating to strong borrower yields
• Conservative loan-to-value (LTV) ratios improving downside protection

This environment creates a compelling risk-return profile for non-bank lenders with experience and local access.

Platform and Track Record

Arrow has established itself as a pan-European leader in private credit and real estate lending, supported by:

• Seven dedicated local lending and real estate platforms
• Deep experience in deal sourcing, underwriting, and execution
• A credit-first approach rooted in rigorous risk assessment and structuring discipline

To support and scale this strategy, Arrow has launched two focused lending vehicles:

• Arrow Lending Opportunities (ALO) I (2024)
• Arrow Bridging (2024)

These funds provide institutional investors with access to Arrow’s curated pipeline of secured credit opportunities across Europe.

Competitive Advantage

Arrow’s competitive edge lies in its local origination capabilities and deep relationships with real estate borrowers, allowing it to identify and execute on differentiated opportunities in a timely and effective manner. The firm’s strong on-the-ground sourcing network, close collaboration with developers and real estate operators, and senior management team with over 20 years of experience position Arrow as a trusted, agile capital partner across the full real estate project lifecycle.