With a team of over 100 investment professionals and the support of dedicated sustainability experts from BNP Paribas Asset Management’s Sustainability Centre, our Private Assets platform combines direct private asset management activities with indirect management and advisory services.
Why private assets
Over the last decade, private assets have risen to prominence in global allocations. Investors are turning to the asset class in search of an illiquidity premium and, given its generally lower correlation to public markets, portfolio diversification. Private markets also allow for ambitious environmental, social and governance (ESG1) targets and can potentially help investors to capture long-term growth trends, often ahead of listed markets.
LONG-TERM TRENDS
INTEGRATION
Why us
BNP Paribas’ Private Assets platform combines the expertise of teams across BNP Paribas Group. It draws on their deep private markets networks and privileged access to the Bank’s financing franchises; their complementary skills in advising, originating, structuring, and managing investments; and BNP Paribas Asset Management’s Sustainability Centre to ensure ESG integration2 to in-scope strategies.
Our Private Assets platform blends both direct investments and indirect management and advisory services. Through this, we can build and tailor high-quality solutions with the aim to meet clients’ investment goals.
Diversified Loan strategy
Investment philosophy
We seek to provide true diversification versus large corporate and government credit exposure alongside sustainable alpha generation through:
- Finding the right originators. We cast a wide net to find high-quality originators with a proven track record in loan sourcing, underwriting and servicing
- Selecting the right loans. We seek to identify attractive loan investments by geography (e.g. country, MSA), borrower type (e.g. prime, near-prime, SME) and security interest (e.g. unsecured, secured, guaranteed)
- Purchasing on the right terms. We source loans from approved originators in primary markets (e.g. direct lenders) or secondary markets (banks & direct lenders) with the flexibility to reallocate new purchases across originators in real-time
Investment process
Our Diversified Loan follows a conservative and prudent investment process, with a focus on identifying the strongest lenders and best loans to deliver stable returns through economic cycles. It includes:
- Opportunity screening
- Quantitative and qualitative analysis
- Investment terms
- Risk management
- Continuous benchmarking
Team and resources
Our Diversified Loan team is based in Amsterdam and led by Tonko Gast, 24 years of industry experience. The team is part of Dynamic Credit Group, which joined BNP Paribas Group in 2022.
The team has extensive experience in analysing and managing granular loan portfolios. They benefit from access to our wider Private Debt and Real Assets (PDRA) investment group, Sustainability Centre, Quantitative Research Group, Macro Research team and the wider BNP Paribas network.
We also provide fund of funds and dedicated advisory or management partnerships to Group entities and third-party clients.
To learn more, contact us.
[1] ESG = Environmental, Social and Governance.
[2] ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology which integrates all three aspects of E, S & G.
Disclaimer
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.
Past performance or achievement is not indicative of current or future performance.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
For a complete description and definition of risks, please consult the last available prospectus and PHS of the fund. Investors considering subscribing to a fund should read carefully its most recent prospectus and PHS that can be downloaded free of charge from our website: www.bnpparibas-am.com.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This advertisement has not been reviewed by the Monetary Authority of Singapore. It is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Singapore Limited [BNPP AMS]. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. It does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund(s), and in the event that he chooses not to seek advice from professional advisors, he should make an independent determination of the suitability and consequences of an investment. Investors considering subscribing to the fund(s) should read carefully the most recent prospectus, offering document including the risk factors and consult the fund(s’) most recent financial reports before investing, as available from BNPP AMS or its authorised distributors. Investments involve risks. Investments in emerging markets involve above-average risk. Given the economic and market risks, there can be no assurance that the fund(s) will achieve its/their investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by BNPP AMS or its authorised distributors or its affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by investment strategies or objectives, markets and economic conditions. Past performance of the fund(s) or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund(s) or the manager and the value of the investments in fund(s) may go down as well as up. Investors may not get back the amount they originally invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements. Views and opinions included herein constitute the judgment of BNPP AMS and its affiliates at the time specified and may be subject to change without notice. BNP PARIBAS ASSET MANAGEMENT Singapore Limited – registered office at 20 Collyer Quay, #01-01, 20 Collyer Quay, Singapore 049319. Company Registration No. 199308471D.
