BNP Paribas closes third European private debt fund
BNP Paribas Asset Management has completed the final close of its third European senior private debt fund.
The BNP Paribas European SME Debt Fund III had a target of €600m (£505.95m), but closed with €741m, following investments by around 20 institutional investors from six different countries. These included insurers, pension funds, asset managers and intergovernmental organisations, BNP Paribas said.
The fund finances small- and medium-sized enterprises (SMEs) and mid-cap companies across Europe in the form of secured bullet loans. It aims to create a portfolio of 70 SMEs and mid-caps, with 40 firms financed to date.
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“Senior European private credit offers a compelling option for SMEs and mid-caps, as one of the key elements for a company to strengthen its leading position, or to bolster global innovation efforts,” said Christophe Carrasco, head of private debt at BNP Paribas Asset Management.
“As far as investors are concerned, private credit offers an attractive risk-return profile with a significant illiquidity premium over the bond market with counterparties that have dominant positions in their specialised sectors.”
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David Bouchoucha, head of private assets at BNP Paribas Asset Management praised the company’s commitment to its private debt business.
“The success of this third senior debt vintage demonstrates the relevance of the model implemented by our private asset platform,” he said.
“The combination of unique market access thanks to the BNP Paribas Group, with the selectivity of experienced management teams, and a rigorous attention to ESG criteria, makes it possible to offer investors a differentiating product in this growing market.”
The fund is classified as Article 8 under SFDR, so all companies’ environmental and social characteristics will be integrated in the investment process.
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