CPP Investments Sells European Non-Performing Loan Portfolio to Fortress and Arrow Global in ~C$1 Billion Deal
TORONTO — May 7, 2026 — Canada Pension Plan Investment Board (CPP Investments) has entered into an agreement to sell its remaining interests in a European non-performing loan (NPL) portfolio to a newly formed joint venture established between funds managed by affiliates of Fortress and funds managed by affiliates of Arrow Global Group, the organizations announced Wednesday.
The transaction is expected to deliver net proceeds of approximately C$1 billion to CPP Investments and is anticipated to close in May 2026. Financial terms beyond the net proceeds figure were not disclosed.
Transaction Details and Strategic Rationale
The sale marks CPP Investments' exit from its remaining European NPL holdings, transferring the assets to a specialized joint venture designed to support active management of the portfolio, particularly assets requiring intensive operational expertise.
"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 and 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."
CPP Investments manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries and reported total fund assets of C$780.7 billion as of December 31, 2025. The organization is headquartered in Toronto with offices in Hong Kong, London, Mumbai, New York City, São Paulo, and Sydney.
Fortress and Arrow Global Form Joint Venture for NPL Acquisition
The acquisition brings together two firms with established track records in European distressed credit markets. Fortress Investment Group and Arrow Global Group will jointly manage the portfolio through the newly formed vehicle.
Francesco Colasanti, Head of Europe and Co-Head of European NPLs at Fortress Investment Group, said the transaction draws on capabilities the firm has developed over more than two decades. "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," Colasanti said.
Zach Lewy, Founder, CEO and CIO of Arrow Global, described the deal as an extension of an existing relationship. "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," Lewy said.
Portfolio Context
The specific composition, individual asset locations, and property-level details of CPP Investments' European NPL portfolio were not disclosed in the announcement.
CPP Investments noted that the sale is consistent with its 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 divestiture allows the pension fund manager to redeploy capital toward opportunities where it sees stronger risk-adjusted returns.
About the Parties
CPP Investments is a professional investment management organization governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its investment portfolio spans public equities, private equities, real estate, infrastructure, fixed income, and alternative strategies.
Fortress Investment Group is a global alternative asset manager with experience across credit, real estate, and private equity strategies. Arrow Global Group is a European specialist in credit management and alternative asset management with direct servicing operations across multiple European markets.
The partnership structure between Fortress and Arrow Global is designed to leverage each firm's local servicing capabilities as the joint venture works through the remaining assets in the portfolio.