Arrow Global acquires Maslow Capital

Arrow Global has fully acquired Maslow Capital in a move to expand its direct lending capabilities in real estate debt.

Marc Rose and Ellis Sher, Chairman and CEO of Maslow Capital which has now been acquired by Arrow Global | BTR News
Marc Rose and Ellis Sher, Chairman and CEO of Maslow Capital which has now been acquired by Arrow Global.

European vertically integrated asset manager specialising in credit and real estate – Arrow Global Group Limited – has recently announced the full acquisition of real estate finance provider Maslow Capital.

The acquisition follows Arrow Global’s initial purchase of a significant minority stake in December 2021 and a 20-month period of successful collaboration that has seen the significant expansion of Maslow Capital’s loan book.

Founded in 2009, Maslow Capital has built a track record in originating, underwriting, and servicing specialist real estate loans ranging from £10m to £300m across several sectors including Build to Rent and co-living. The company recently provided a £10m development loan to IPG for The Lyceum Build to Rent scheme in Manchester.

Maslow Capital’s support for enterprising developers has played a pivotal role in the successful completion of real estate projects valued at over £5.1bn, resulting in circa 17,500 units across 257 projects.

“Arrow invests across European geographies, asset classes and positions in the capital stack. To execute this strategy, we have developed our geographical and asset class expertise. Maslow is an accretive addition to our existing direct lending strategy which includes specialist mortgage and term products through RNHB. Being part of the Arrow platform will allow Maslow to expand its services across Europe. We are delighted to announce the full acquisition.”

Zach Lewy, Group CEO and CIO, Arrow Global

The acquisition is set to strengthen Arrow’s Lending Opportunities strategy and complements its existing investment activities across the credit and real estate sectors.

While the acquisition expands Arrow’s direct lending capabilities in the UK, it also enables Maslow Capital – which will continue under the leadership of Chairman Marc Rose and CEO Ellis Sher – to significantly expand its operational reach across Europe, by leveraging Arrow’s extensive European asset management and servicing network.

Asset-backed private credit has become increasingly appealing to investors due to the protection afforded by real estate collateral, whilst delivering attractive risk adjusted returns as interest rates remain elevated. 

Notwithstanding a higher interest rate environment, housing demand in many parts of Europe outstrips supply and Arrow continues to seize investment opportunities in markets that display that core characteristic.

“We look forward to leveraging Arrow’s deep platform capabilities across Europe and to develop Maslow into a leading pan-European real estate finance provider. This acquisition marks the beginning of our broader strategy to offer adaptable, innovative, and timely real estate financing solutions throughout Europe’s living sectors, using Arrow’s extensive resources and capital to create value for all stakeholders.”

Marc Rose and Ellis Sher, Chairman and CEO, Maslow Capital

This latest acquisition further augments Arrow’s ability to generate sustainable value throughout market cycles across a range of alternative asset classes.

The investment in Maslow Capital comes after it delivered a record year on all metrics, further enhancing Arrow’s existing UK platforms which include Eagle Street Partners, Blue Current Capital, Drydensfairfax and Bergen Capital.

With this addition, the Group now owns 18 specialist asset management and servicing platforms across five European markets.