BNP Paribas Asset Management has unveiled a couple of private debt strategies, European Infra Debt and European Real Estate Debt, whose launches took place at the end of 2017.
The former focuses on senior secured loans in Europe across a variety of sectors, that includes transport, social infrastructure, telecoms, renewable and conventional energy and utilities.
The latter invests in senior secured loans within the European commercial real estate segment, including offices, retails, logistics, hotels, operating assets and non-standard assets.
These funds form the first step of the Paris-headquartered manager in infrastructure debt and commercial property debt.
The manager underlines that asset sourcing for both strategies relies on open-architecture as they invest through direct lending and bank partnerships. Environmental, social and governance criteria are also taken into account for asset selection.
BNPP AM announced that three senior members have joined BNPP AM’s private debt and real assets platform, Pauline Fiastre, Vincent Guillaume and Frédéric Soulié.
The investment group, that was established last year, had €7.7bn of assets under management as of 30 November 2017.
David Bouchoucha, head of Private Debt and Real Assets, said: “Infrastructure and real estate debt have become an essential component of asset allocation for clients looking for stable income from long dated instruments. They also offer an attractive risk return profile, with insurers subject to a Solvency II framework additionally benefitting from favourable Solvency Capital Ratio treatment.
“The launch of these strategies is an important milestone in the development of BNPP AM’s global franchise, and they are currently generating significant interest, with commitments from anchor investors and a strong pipeline of further potential commitments.”