Debt Purchaser Arrow Global Group has reported record investment volumes of £303.7 million in its full-year results, with investment volumes at a consistent 17% net internal rate of return.
The company also saw that its profits before tax increase by 28.3 percent. Estimated remaining collections for the next 84-month period is at £1.8bn, which is an 11 percent growth on last year. For the next 120 months, estimated remaining collections are £2bn, which is a 3.2 percent growth from last year.
Commenting on the latest results, Lee Rochford, Group chief executive officer of Arrow Global, said “The business performed well against its key operating metrics in 2019, with returns in the Investment Business remaining strong and improving margins in our Asset Management and Servicing business leading to a 28.3% increase in profit before tax to £51.3 million. This helped increase free cashflow generation by 13.3% to £261.4 million, allowing us to increase the dividend for the seventh year in a row and finish 2019 within our new lower leverage range of 3.0x-3.5x.”
“We are excited by Arrow’s future prospects and continue to see enormous opportunity to generate strong returns in our chosen markets. The launch of our Fund Management business is transformational for the Group, allowing us to capture more of this opportunity while also growing our capital light earnings. Our initial fundraise of €838.0 million was a milestone in our evolution to become a fully integrated alternative asset manager. We believe we can scale this business significantly over time and are continuing to target total Funds Under Management (FUM)of €2.0 billion by the end of 2020.”