BNP Paribas Asset Administration is reportedly seeking to elevate €1bn (£854,000) for a brand new direct lending fund that targets mid-sized corporations.
Not like the French financial institution’s different non-public credit score automobiles, this fund will supply unitranche loans – services that mix senior and junior debt – in accordance with sources cited by Bloomberg.
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BNP Paribas is in talks to make use of money from its steadiness sheet for the fund, alongside cash from exterior buyers, in accordance with the sources.
The crew working the brand new fund might be led by Christophe Carrasco, the agency’s head of lending to small- and medium-size enterprises, they mentioned.
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A spokesperson for BNP Paribas declined to remark to Bloomberg.
“Lately we’re seen extra pension funds going into this area,” Bouchoucha mentioned.
“Now that absolute returns are arising, even some purchasers like household places of work and smaller establishments who have been beforehand extra centered on non-public fairness are coming into various credit score.
“I feel the asset class is reworking into an allocation for conventional mounted revenue buyers like insurers, into an asset class in itself. It has develop into a part of the consideration of any allocation dialogue for all buyers.”