BNP Paribas Asset Management is the asset management arm of BNP Paribas, one of the world’s foremost financial institutions, and offers high value-added solutions to individual savers, companies, and institutional investors. BNP Paribas Asset Management’s infrastructure strategy is part of the private assets platform which comprises more than 100 investment professionals and manages EUR 30 billion of assets (as of April 2023) through a wide range of private markets investment solutions that fully integrate environmental, social and governance (ESG) criteria into their selection processes. This allows investors to have a concrete impact on the company, including the financing of property projects while accessing investment opportunities that offer an optimum risk/return profile.
Our infrastructure strategy invests in senior secured and junior loans in Europe in the transportation, digital, renewable energy, social infrastructure and utilities sectors.
Our vision and beliefs
Sustainability is at the heart of BNP Paribas Asset Management’s strategy and investment decision-making process, making an active contribution to energy transition, environmental protection and the promotion of equality and inclusive growth. Its aim is to achieve long-term sustainable investment returns for its clients.
Our investment philosophy is to provide our clients a unique added value in their private debt investments through our distinctive ability to originate assets, a disciplined investment process, and the ability to customise solutions to client needs.
The investment philosophy is bottom-up dominated while also presenting top-down features, and rests on the following four pillars:
- Extensive sourcing is essential for effective relative value analysis.
- Optimal opportunity selection is key to driving returns.
- Robust investment process is fundamental to alpha generation.
- Applying sustainable approach delivers positive impact.
Investment process and research
Our investment process is disciplined and comprehensive, with the objective to bring investors diversification of credit exposure through sectors and countries, while optimising the portfolio’s risk/return profile.
One of the key strengths of our investment process rests on the highly experienced professionals who participate in the selection, monitoring and servicing of the loans from inception to maturity. The investment team has a proven track record both on deal execution and servicing.
The strategy also benefits from the support of the BNP Paribas Group network, where the team have privileged access to the market research and opportunities of the group.
Our strategies rely on a strict bottom-up investment process, summarised in the steps below:
- Opportunity Sourcing
- Credit & Sustainability Analysis
- Investment validation
- Execution
- Portfolio monitoring
- Risk management
Embedding ESG into our process:
Policy implementation is overseen by our dedicated sustainability centre, and our internal ESG team uses a tailored taxonomy based on the European taxonomy. We also have an environmental tool focused on climate impact assessment.
Recent Highlights
- Another strong year of fundraising and deployment.
- For our first vintage junior debt strategy, we have already successfully deployed €188m of capital across 6 transactions
- We have successfully closed our second vintage senior debt fund, raising €890m in capital.
- Our performance remains above target, with a running yield of 3M Euribor + 2.76% (vs target of 3M Euribor + 2.40%) and our portfolio continues to have a net positive environmental impact
BNP PARIBAS ASSET MANAGEMENT UK Limited, “the investment company”, is authorised and regulated by the Financial Conduct Authority. Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom. This material is issued by the investment management company. Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. This material does not constitute or form part of an offer or invitation to subscribe for, underwrite or purchase an interest in any strategy. As at June 2023.
