A strategic exit signals where Canada's biggest pension fund is betting next
Canada's largest pension fund is getting out of the European bad-loan business.
CPP Investments has agreed to sell its remaining interests in its European non-performing loan (NPL) portfolio to a joint venture between funds managed by Arrow Global Group and Fortress Investment Group, generating approximately $1bn in net proceeds.
Ben Mason, managing director and head of European credit at CPP Investments, said the fund conducted a comprehensive review before deciding to exit, and will redeploy the capital “toward opportunities where we see stronger risk-adjusted returns.”
The deal shifts the remaining assets to what Mason described as “specialized operators with deep local servicing capabilities.”
The sale aligns with CPP Investments' broader shift in European structured credit toward asset-backed finance, direct lending, and other capital-efficient strategies — away from the intensive operational demands of NPL management.
Arrow founder and CEO Zach Lewy said the acquisition builds on an existing relationship with CPP Investments.
Fortress's Francesco Colasanti, head of Europe and co-head of European NPLs, said the deal draws on more than two decades of NPL investing and servicing experience.
The transaction is expected to close in May 2026.
