BNP Paribas Asset Management said today (5 September) that its final close of the BNP Paribas European SME Debt Fund III reached €741m, above the initial target of €600m.
The SME Debt Fund III fund finances Small and Medium sized Enterprises and Mid-cap companies in Continental Europe in the form of secured bullet loans.
Since its creation in 2016, BNPP AM’s private debt activity helped more than 250 companies develop their business with more than €1.7bn deployed.
This third vintage has won the confidence of around twenty institutional investors from six different countries, including insurers, pension funds, asset managers and intergovernmental organizations. This success consolidates BNP Paribas Asset Management's position in the dynamic corporate private credit market. This fast-growing market offers investors the opportunity to diversify their asset allocation, with an attractive risk-return profile. It also provides successful companies with an additional opportunity to finance their long-term growth.
Fund III targets a portfolio of 70 SMEs and Mid-caps that are champions in their respective sectors and has already financed more than 40 companies at this stage. As per the two previous vintages, Fund III has a distinctive positioning in the private debt universe thanks to its very high granularity, combined with a strong selectivity of financing opportunities.
This is made possible by the well-established partnership between the fund's management team and BNP Paribas' banking networks, which represent an important but not exclusive part of the identification of the financed companies, the statement said.
Classified as Article 8 under SFDR, Fund III integrates companies’ environmental and social characteristics in its investment process.
Christophe Carrasco, head of private debt at BNPP AM, said: “Senior European private credit offers a compelling option for SMEs and mid-caps, as one of the key elements for a company to strengthen its leading position, or to bolster global innovation efforts. As far as investors are concerned, private credit offers an attractive risk-return profile with a significant illiquidity premium over the bond market with counterparties that have dominant positions in their specialised sectors.”
David Bouchoucha, head of private assets at BNPP AM, added: “The success of this third senior debt vintage demonstrates the relevance of the model implemented by our private asset platform. The combination of unique market access thanks to the BNP Paribas Group, with the selectivity of experienced management teams, and a rigorous attention to ESG criteria, makes it possible to offer investors a differentiating product in this growing market.”
Fund III is managed by BNPP AM's Private Assets division, created in January 2023. It consists of more than 100 investment professionals and currently manages and advises €40m in assets.
