Private Debt 2.0: a fundamentally sound investment
As we head into 2025, one thing is clear: the landscape of private credit is transforming at an unprecedented pace. In Preqin’s latest Investor Outlook H1 2025, Arrow Global’s Zachary Lewy Lewy explores the seismic shifts driving this evolution – from the refinancing challenges of pre-2022 loans to the growing appeal of Southern Europe as an investment hotspot. With banks stepping back from traditional lending, private credit is emerging as the key player in bridging the financing gap, offering tailored solutions in a market hungry for capital.
“Businesses, loans, and investments made before 2022 are facing significantly more challenges in today’s environment compared to those executed more recently. Trillions of euros in outstanding loans from this period are now approaching refinancing in a vastly different financial landscape.”
“Historically, Northern Europe has commanded a significant premium over Southern Europe. However, since 2022, performance in the south has improved to the point where that discount is no longer justified.”
“The more you examine private credit’s evolution, the clearer it becomes that the industry is developing on a solid foundation. The real question, then, is not whether private credit is sustainable – it’s whether it could be growing even faster.”
Read Zach’s expert commentary to understand why transparency, risk-adjusted returns, and strategic market positioning are defining the next era of private debt.
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Zach Lewy
CEO, CIO, Fund Principal
Zach has more than 25 years of executive experience in investment management and asset servicing. He founded Arrow Global in 2005 and has since led the business as Group CEO and CIO, transforming it into a leading Pan-European investment manager specialising in private credit and real estate. Under Zach’s leadership, Arrow manages more than €110 billion of serviced assets across Western Europe and generates alpha across alternative asset classes, including opportunistic credit, real estate, and lending.
Zach has supervised over 3,000 deals at Arrow and plays a key role as lead Principal in Arrow’s fund manager. Prior to founding Arrow, he was an Officer of Sallie Mae, a Director at Vertex (the BPO division of United Utilities), and a Founder and Executive Director of 7C (a U.K. BPO company acquired by Vertex). He has also served as Chair of the U.K. Debt Buyers Association and the Chair of SCOR. In 2010, he was named an Ernst and Young Entrepreneur of the Year.
Zach graduated from Princeton University with a BA in Economics with Honours and a Certificate in Applied and Computational Mathematics with Honours.