European asset manager Arrow Global Group has announced two high-profile appointments to 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, former Brookfield executive Zachary Vaughan will serve as the Group’s head of Real Estate and join its Investment Committee, while Morgan Stanley's professional Toni McDermott will become the Chief Investment Officer of Credit and Direct Lending.
Vaughan was most recently a managing partner in Brookfield’s Real Estate Group and 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, he 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, Vaughan worked at the CPP Investments (Canada Pension Plan) and Reichmann International.
In a statement, Arrow said that the appointment ‘highlights Arrow’s deepening commitment to the real estate sector, as evidenced by the initial closing of the 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 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.
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 bn to reach the Fund's hard cap of €2.75 bn. This closing 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 major 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.'
