Local Knowledge in European Private Credit Investments

This document is a sponsored opinion piece by Arrow Global, authored by Adam Baghdadi, which discusses the intricacies of investing in European private credit. It outlines the current environment for both opportunistic and distressed credit investments, emphasizing the impact of macroeconomic conditions on investment opportunities and risks. The text details the importance of local knowledge and presence in navigating the diverse legal and regulatory landscapes across Europe. It explains how having expert local platforms can enhance origination quality and recovery rates. The document also highlights the attractiveness of mid-market investments, which represent a significant portion of the market and offer less competition compared to larger deals. Additionally, it addresses the significance of asset quality in achieving favorable investment outcomes and the role of operational expertise in enhancing real estate value. The discussion includes insights into investor concerns regarding macroeconomic uncertainties and the strategies employed to mitigate risks.