John Bakie
The second SME loan fund from BNPP AM will provide growing SMEs with a combination of fund and traditional bank finance.
The move is part of NN IP’s aim to grow its alternative credit capabilities, which already amount to €40bn of assets.
Private markets are likely to benefit from increased allocations from insurance companies seeking higher returns in the coming years.
The fund will adopt a conservative strategy and incorporate ESG into its investment process.
Investors are still looking to commit more capital to private debt, with direct lending the most popular strategy.
Investment leadership will be shared across New York and London under new structure.
Real assets are a large but often hidden part of the private debt world.
SME lending could help investors to access a risk-return profile unavailable elsewhere. But the sector is far from homogeneous, and therefore challenging.
Private debt growth slowed due to distributions to investors but the firm is on target to reach its long-term fundraising targets.
Luxembourg debt funds continue to grow, albeit at a slower pace, in 2019 as direct lending popularity surges.