By Daniel Lanyon on Wednesday 7 February 2018
The firm has been adding fire power to its private debt proposition over the past year.
BNP Paribas Asset Management has launched two private debt strategies, European Infra Debt and European Real Estate Debt. The launches are BNPP AM’s first within infrastructure debt and commercial real estate debt.
European Infra Debt invests in senior secured loans in Europe across sectors including transport, social infrastructure, telecoms, renewable energy, conventional energy and utilities. European Real Estate Debt targets a portfolio of senior secured loans in commercial real estate across the whole European market, including offices, retails, logistics, hotels, operating assets and non-standard assets.
Asset sourcing for both strategies is based on a distinctive open architecture model, investing through direct lending and bank partnerships, as well as leveraging the BNP Paribas Group’s infrastructure and real estate franchises.
Both strategies incorporate a strong focus on Environmental, Social and Governance (ESG) criteria within asset selection and are managed by teams of seasoned investment professionals using robust investment processes.
Since the arrival of Karen Azoulay as Head of Infrastructure Debt asnd Philippe Deloffre as Head of Real Estate Debt in the second quarter of 2017, the teams have been strengthened with the hire of three additional senior members.
Pauline Fiastre (pictured) and Vincent Guillaume have a combined experience of nearly 30 years as infrastructure finance bankers. Both come from banking institutions in the infrastructure debt market, where they originated, structured and advised on a variety of infrastructure transactions . Frédéric Soulié has been an international property finance specialist for more than 20 years, with significant experience of loan origination, structuring and distribution across all real estate asset classes in the USA and Europe.
These recent developments are part of the broader initiative launched by BNPP AM a year ago within private debt, which began with the creation of its Private Debt & Real Assets investment group.
Headed up by David Bouchoucha, the platform consists of 50 investment professionals and manages assets totalling €7.7bn (as at 30 November 2017) across a wide range of private debt solutions, including leveraged finance, mid-cap financing, Small and Medium-Sized Enterprises (SME) loans and structured finance, as well as infrastructure debt and real estate debt.
David Bouchoucha, Head of Private Debt & Real Assets, said: “Infrastructure and real estate debt have become an essential component of asset allocation for clients looking for stable income from long dated instruments.”
“They also offer an attractive risk return profile, with insurers subject to a Solvency II framework additionally benefitting from favourable Solvency Capital Ratio treatment. The launch of these strategies is an important milestone in the development of BNP Paribas Asset Management’s global franchise, and they are currently generating significant interest, with commitments from anchor investors and a strong pipeline of further potential commitments.”
“We are committed to investing heavily in private debt and real assets, and providing our clients with a broad range of solutions based on a distinctive approach to asset sourcing and selection.”