BNP Paribas Asset Management (BNPP AM), the investment management arm of BNP Paribas, has launched a new lending service offering clients access to the UK SME (small & medium-sized enterprise) lending market.
The BNP Paribas UK SME Debt Fund 1 will invest in senior loans to SMEs with an annual turnover of under £50 million, which are originated through BNPP AM’s SME Alternative Financing platform.
Stéphane Blanchoz, head of SME Alternative Financing at BNPP AM, said: “Since the global financial crisis there has been a paradigm shift in the market as new funding models have emerged.
“Banks remain a key feature of the SME lending market and investment funds have traditionally been providing financing in the upper end of the mid-market area, while smaller companies are increasingly accessing finance through fintech crowdfunding solutions or peer-to-peer lending.”
Blanchoz said BNP Paribas AM will target SMEs where there are opportunities for businesses to contribute to UK GDP growth, but where sustainable funding solutions have been limited.
Philip Dawes, head of UK sales (UK & Ireland) at BNP Paribas AM, said: “BNP Paribas UK SME Debt Fund 1 represents an extension to our private debt and real assets capability, an area of continued interest to our clients.
“SMEs continue to play an important role in the real economy in the UK, in terms of employment, growth and innovation.”
The new SME fund follows on from BNPP AM’s acquisition activity in November 2017 when it bought a 10% stake in alternative SME credit specialist Caple, whose proprietary technology platform offers access to a network of around 70 accountancy and advisory firms.
More recently, in July 2018, BNPP AM announced a strategic alliance with CODE Investing, a UK based fintech lending platform.
