Arrow Global Group announce senior appointments

By Bridging Loan Directory 25th September 2023

Arrow Global Group (“Arrow” or “the Group”), a leading European vertically integrated alternative asset manager specialising in private credit and real estate, is delighted to announce the appointment of two industry leaders to further accelerate its growth in Private Debt and Real Estate.

Reporting directly to Zach Lewy, Founder, CEO, Chief Investment Officer, and a part of the Group’s Leadership Committee, Zachary Vaughan will serve as the Group’s Head of Real Estate and join its Investment Committee, and Toni McDermott will become the Chief Investment Officer of Credit and Direct Lending.

Owning critical components of the European infrastructure, including 19 best-in-class asset management and servicing platforms, Arrow has established itself as a leading European private credit and real estate investment platform, delivering strong risk-adjusted returns for global investors.

The appointments of Zachary and Toni demonstrate Arrow’s firm commitment and strong ambition to responsibly scale its disciplined investment activities across Opportunistic Credit, Direct Lending and Real Estate.

Zachary Vaughan: Head of Real Estate and Chair of the Real Estate Investment Committee

Head of Real Estate and member of the Investment Committee, Zachary’s appointment is a testament to Arrow’s commitment to strengthening its real estate proposition.

Zachary was most recently at Brookfield Asset Management, where he was a Managing Partner in Brookfield’s Real Estate Group.

In his most recent role, Zachary served as CEO and a member of the Board of Directors of Brookfield REIT. Prior to 2021, he was the Head of Europe, overseeing all real estate activities in the region, including investments, asset management, and new fund formation.

During his tenure at Brookfield, Zachary was involved in investments across various property sectors, including Thayer Lodging Group, Inc., Center Parcs, Gazeley, Student Roost, International Campus, and the Interhotels Group.

Prior to joining Brookfield, Zachary worked at the CPP Investments (Canada Pension Plan) and Reichmann International.

His appointment highlights Arrow’s deepening commitment to the real estate sector, as evidenced by the initial closing of our real estate equity vehicle (AREO) and recent acquisitions.

These acquisitions include Eagle Street Partners, a real estate asset manager and developer, Blue Current Capital, an ESG-focused real estate investor, developer and operator enabling and accelerating the electrification of commercial fleets, as well as the launch of Mica Real Estate in the Netherlands.

Toni McDermott: CIO, Credit and Direct Lending

Toni’s expertise in corporate lending, securitisation, structured finance, NPL investing, and principal finance align perfectly with Arrow’s strategic approach to financing high-quality assets that present opportunities for operational enhancement, making her an excellent addition to lead Arrow’s Opportunistic Credit and Direct Lending teams.

Toni joins Arrow from Morgan Stanley APAC, where she served as the Managing Director of Loan Solutions and Securitisation.

In this role, she advised clients on sales, acquisitions, and financing of pools of financial and real estate assets across the significant markets of Australia, New Zealand, China, and Southeast Asia.

Prior to this, she was a Managing Director in Centerbridge Partners Europe, responsible for the firm’s Asset Backed Special Situations business in Europe.

Her appointment coincides with an exciting phase for Arrow. Earlier this year, Arrow’s Credit Opportunities II Fund (ACO II) received extensive investor demand from both new and existing partnerships, significantly exceeding its fundraising target of €2.5 billion to reach the Fund’s hard cap of €2.75 billion.

This achievement established ACO II as the world’s largest distressed debt fund raised in Q1 2023.

Furthermore, Arrow has continued to invest in direct lending capabilities, most notably through the acquisition of Maslow Capital, a leading provider of real estate finance, and the roll-out of a bridge lending proposition across its European markets.

Zach Lewy, Founder, CEO, and Chief Investment Officer of Arrow, said:

“The inclusion of both Zachary and Toni in the Arrow team signifies a major advancement in our Opportunistic Credit, Direct Lending, and Real Estate investment strategies.

Our goal has always been to assemble the best team and Zachary’s vast experience will be pivotal for future growth in Real Estate. Toni, with her distinguished 25-year career across asset-backed and corporate credit, will undoubtedly bolster our capabilities, driving forward our Credit and Direct Lending strategies.

We warmly welcome both of them to the Arrow leadership team, with Zachary also joining as a shareholder.”

Zachary Vaughan added:

“I am thrilled to be joining Arrow at this time in its development.

Arrow has an incredibly strong group of real estate operating companies in five countries, allowing them to source unique, off-the-run investment opportunities for ours and our partners’ capital.

I look forward to working with the Arrow team and the operating business to take advantage of what will be a terrific time for opportunistic real estate investing.”

Toni McDermott remarked:

“The strength of the Arrow franchise, enhanced by its local asset management and servicing platforms, offers a compelling market proposition.

My global experience in the private capital markets will be instrumental in helping Arrow capitalise on the promising opportunities within an expanding investor landscape.”