What's New In Investments, Funds? – BNP Paribas AM

Editorial Staff

9 September 2024

BNP Paribas Asset Management
has completed the final close of its third European private debt fund.

The entity, which is called the BNP Paribas European SME Debt Fund III, or “Fund III”, attracted a total fundraise of €741 million ($822.8 million) – above the initial target of €600 million.

The fund finances small and medium-sized enterprises and mid-cap firms in Continental Europe in the form of “secured bullet loans.” (A “secured bullet loan” is a type of debt financing where the borrower makes no or interest-only monthly payments during the loan term, and then makes a single payment at the end of the loan to pay off the principal and interest.) Since its creation in 2016, BNPP AM’s private debt activity helped more than 250 companies develop their business with more than €1.7 billion deployed.

Insurers, pension funds, asset managers and intergovernmental organisations in six countries were among investors into the fund.

Fund III targets a portfolio of 70 SMEs and mid-caps, the firm said.