BNP Paribas Asset Management is launching an evergreen diversified private credit fund under the new European Long Term Investment Fund label (ELTIF 2.0) regulatory framework, providing access to an attractive and fast-growing investment segment. The BNP Paribas Alternative Strategies – Diversified Private Credit Fund simplifies access to private credit markets for professional and non-professional clients through a well-diversified access to European private debt markets with regular liquidity and attractive returns. The fund will invest in European corporate and real assets debt in Infrastructure and Commercial Real Estate and targets institutional as well as wealth management distribution channels.
Private markets keep growing in Europe, with companies becoming increasingly familiar with accessing alternative funding sources away from traditional banks. For several years, investors have been embracing the benefits of attractive longer-term returns and portfolio diversification that private asset investing offers. The introduction of the ELTIF 2.0 label is specifically aiming at providing mass affluent clients with similar investment benefits as institutional investors and follows the trend in the US where the democratization of private markets is several years ahead.
The Fund focuses on Eurozone debt, leveraging on BNP Paribas bank’s position in Europe giving privileged access to its deep sourcing expertise and extensive origination network. The various private credit strategies represented in the fund are managed by BNP Paribas Asset Management’s Private Asset division with a successful track record and 40bn euros of assets under management and advisory. Finally, the fund is fully integrating BNP Paribas Asset Management’s sustainability DNA in the investment process. The fund is currently being marketed to institutional clients and wealth management distribution channels.
Lucien Carton, Head of Solutions & Client Advisory: “With this new fund, we offer our clients diversified private market investment access through a unique solution, easy to access and packaged conveniently with quarterly liquidity. The fund is an exciting addition to our offering, enabling our clients to access private debt investment opportunities.”
David Bouchoucha, Head of Private Assets: “We are proud to be amongst the first market players to participate in the new ELTIF market with an offering that is very diversified across the wide range of private debt investment opportunities, and fully leverages our broad private credit platform as well as privileged access to the wider BNP Paribas Group leading franchises in European credit markets.”
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Private assets do, however, require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid.
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