The firm is targeting institutional investors in the second iteration of its private debt fund that lends to French SMEs.
BNP Paribas Asset Management has launched a new SME lending fund for institutional investors.
The BNP Paribas Novo 2018 business loan fund follows on from its Novo 1 fund, launched in 2013. The new fund has the backing of the FF and the CDC and aims to provide new sources of financing to help French medium-sized companies expand.
BNP Paribas Novo 2018 could invest €264m over the next three years, the firm said in a statement.
The fund will invest through Euro Private Placements or direct loans to finance “ambitious projects primarily by French medium-sized companies”.
Alongside credit quality the fund will target firms meeting environmental, social & governance (ESG) criteria.
BNP Paribas Novo 2018 is managed by BNPP AM’s Private Debt & Real Assets team. David Bouchoucha, head of BNP Paribas Asset Management’s private debt & real assets investment group, offers a bullish outlook for the firm’s burgeoning private debt business.
“We are proud to have launched the Novo range of funds for financing French SMEs and medium-sized companies, and proud that our clients have once again placed their trust in us. This is consistent with our status as a benchmark player in private debt, with more than €7.5bn of assets under management.”
“The launch of BNP Paribas Novo 2018 demonstrates our steadfast presence alongside companies seeking alternative financing. It also confirms the on-going commitment of insurance companies and institutional investors for this asset class.”