Linklaters has advised the Canada Pension Plan Investment Board (CPP Investments) on the sale of 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 and funds managed by affiliates of Fortress Investment Group. The agreed transaction will deliver net proceeds to CPP Investments of approximately C$1 billion across the total portfolio and is expected to close in May 2026.
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.
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.
A cross-practice team led by Corporate Partner Tracey Lochheadand Capital Markets Counsel Gigi Hock has advised CPP Investments on this complex transaction. The team in London and Madrid included Partners Lucy Sidey (Capital Markets), Alexei Franks and Javier Garcia-Pita (both Tax), Counsel Juan Maria Lamo(Capital Markets), Managing Associate Vivasvan Bansal (Corporate) and Associates Mona Zhang (Corporate), Alicia Vidal and Ainhoa Saenz-Cortabarria (both Tax).
Recently, Linklaters has advised CPP Investments on its strategic transactions, including, along-side Equinix, the US$4 billion acquisition of atNorth, the establishment of a A$14bn European data centre partnership with Goodman Group and the acquisition of Castrol alongside Stonepeak, from BP p.l.c for enterprise value of approximately US$10.1bn.
