By Daniel Lanyon on 1st November 2018
The wider BNP Paribas Asset Management group is swiftly increasing its private debt and alternative lending firepower.
BNP Paribas Capital Partners is eyeing a close for its new fund of of debt funds at €250m in 2019, the firm has said in a media statement.
BNP Paribas Asset Management’s specialist external alternative manager selection team launched an dedicated investment programme earlier in 2018 to provide institutional investors with exposure to special situations in the European private debt market at discounted levels.
The firm says that fundraising is ongoing but is expected to be reached in 2019.
It will be structured as a closed-ended fund of debt funds, with a lifespan of seven years and an average duration of about two and a half years and, BNP Paribas AM says, aims to offer investors a net internal rate of return (IRR) of around 9-12 per cent.
Capital will be deployed in funds invested in corporate debt issued by mid-sized companies that have experienced difficulties or have been excluded from traditional financing channels.
Funds investing in corporate debt and loans, either performing or non-performing, and primarily tier one, within the European financing system will be targeted. Debt may be bought either on the secondary market or from banks holding it since issue.
Gilles Guerin, CEO of BNP Paribas Capital Partners, said:“The initial closing of BNP Paribas CP European Special Opportunities Debt Fund demonstrates the value and relevance of the concept and will allow us to begin implementing the investment programme. The strategy is being managed by our specialist investment team, whose members average almost 16 years’ experience of identifying, selecting and investing in alternative funds.”