TORONTO, May 7, 2026 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) today announced that it has entered into an agreement to sell its remaining interests in its European non-performing loan ("NPL") portfolio to a newly formed joint venture vehicle established between funds managed by affiliates of  Arrow Global Group ("Arrow") and funds managed by affiliates of Fortress Investment Group ("Fortress").

"Following a comprehensive review of the portfolio and its long-term outlook, we have taken the decision to exit this investment and transition the remaining assets to specialized operators with deep local servicing capabilities," said Ben Mason, Managing Director, Head of European Credit at CPP Investments. "This transaction reflects a disciplined approach to portfolio management and allows us to redeploy resources toward opportunities where we see stronger risk-adjusted returns."

Both Fortress and Arrow bring significant experience in managing and servicing complex credit portfolios across Europe. The partnership structure is designed to support the active management of the remaining assets, particularly those requiring intensive operational expertise.

Francesco Colasanti, Head of Europe and Co-Head of European NPLs at Fortress Investment Group, added, "We are thrilled to be working with CPP Investments and Arrow Global on this acquisition. This transaction leverages the non-performing loan investing and servicing capabilities that we have developed over more than two decades."

Zach Lewy, Founder, CEO and CIO of Arrow Global, said: "We are delighted to be working with CPP Investments and Fortress on this acquisition. It builds on our broader relationship with CPP Investments and reflects our shared confidence in the value of this portfolio and the opportunity ahead. Together, Arrow and Fortress bring direct servicing experience on the portfolio, alongside deep local capabilities across Europe."

The sale is consistent with CPP Investments' broader strategy in European structured credit to focus on scalable, capital-efficient opportunities across asset-backed finance, direct lending, and other core credit strategies.

The agreed transaction will deliver net proceeds to CPP Investments of approximately C$1 billion across the total portfolio. The transaction is expected to close in May 2026.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments^™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2025, the Fund totaled C$780.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

SOURCE Canada Pension Plan Investment Board