BNP Paribas Investment Partners completed a €500m debt fund.
Backers of the BNP Paribas European SME Debt Fund included top-tier European insurers and pension funds such as AG2R La Mondiale, BNP Paribas Cardif, CNP Assurances, l’ERAFP, Federal Finance Gestion on behalf of Suravenir, La France Mutualiste, Groupama, MACIF, MAIF, Pensio B OFP and the BNP Paribas Group, as well as the European Investment Fund.
Complementary to traditional bank loans, the The fund finances small and medium sized enterprises in Europe combining bank lending and fund financing. It offers a financing solution that combines a medium term bank loan (of about 5 years), with a long-term loan provided by the fund (7-10 years).
The loan origination will mostly be via privileged access to SME debt deal flow provided by the European banking network of the BNP Paribas Group.
Capital is expected to be deployed across 100-150 SME and small mid-caps.