BNP Paribas targets €1bn for new direct lending fund
BNP Paribas Asset Management is reportedly looking to raise €1bn (£854,000) for a new direct lending fund that targets mid-sized companies.
Unlike the French bank’s other private credit vehicles, this fund will offer unitranche loans – facilities that blend senior and junior debt – according to sources cited by Bloomberg.
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BNP Paribas is in talks to use cash from its balance sheet for the fund, alongside money from external investors, according to the sources.
The team running the new fund will be led by Christophe Carrasco, the firm’s head of lending to small- and medium-size enterprises, they said.
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A spokesperson for BNP Paribas declined to comment to Bloomberg.
“Recently we’re seen more pension funds going into this space,” Bouchoucha said.
“Now that absolute returns are coming up, even some clients like family offices and smaller institutions who were previously more focused on private equity are coming into alternative credit.
“I think the asset class is transforming into an allocation for traditional fixed income investors like insurers, into an asset class in itself. It has become part of the consideration of any allocation discussion for all investors.”