The bank’s asset management arm is forming a “strategic alliance” in alternative credit.
Through the alliance and a 10 per cent stake in Caple, BNP Paribas Asset Management (BNPP AM) is establishing a new platform to offer alternative credit to European SMEs.
The open architecture platform, named SME Advanced Solutions, will source loans across multiple origination channels across Europe and distribute them to institutional investors.
The new platform is supported by the bank’s infrastructure, as well as selected partners like Caple, which will originate loans for BNPP AM through its own service.
Likewise, Caple has built a proprietary technology platform that supports end-to-end credit application, combining origination by local partner networks of accountancy and advisory firms with an initial credit assessment by its credit analysis teams.
The European start up aims to facilitate access to alternative credit for European SMEs, targeting smaller firms in the Netherlands, UK and Germany with unsecured loans between €500,000 and €5m with terms between 5 and 8 years.
“This alliance allows us to effectively address the significant gaps in the European funding landscape by offering access to alternative credit to complement traditional lending models,” commented Dominic Buch, managing partner at Caple.
Likewise, Stéphane Blanchoz, Head of SME Advanced Solutions at BNP Paribas Asset Management said: “The trend towards disintermediation and the growing need for SME funding creates opportunities for lending platforms, such as SME Advanced Solutions, that can offer alternative credit as a complementary source of finance alongside traditional bank lending.”
Buch added: “We look forward to working with the SME Advanced Solutions Platform and our Partners in the accountancy and advisory industries to provide successful SMEs with access to fairly priced business loans at scale, across Europe.”
