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Laxman Pai, Opalesque Asia: BNP Paribas Asset Management has raised more than €570m ($647m) for the final close of its second Euro SME Debt Fund.
The fund's predecessor vehicle held a final close in October 2016 on €500m, said a press release from the French asset management giant.
Commitments have been received from 20 investors based in France, Belgium, the United Kingdom, Italy, and Japan, half of whom are existing investors in Fund I.
Both funds provide a source of long-term financing for small and medium-sized enterprises (SMEs), in the form of senior debt in fine or deferred amortization, which is complementary to conventional bank financing.
"As SMEs have more difficulty accessing the bond market, this source of funding allows them to acquire the additional resources necessary for their development," the release said.
Fund I has provided finance for 101 SMEs, each with fewer than 3,000 employees and turnover below EUR 50 million, in France and Italy, across a diversified range of industries.
Fund II similarly offers SMEs an innovative 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).
Loans are originated primarily through the partnership between BNPP AM and the BNP Paribas Group's business networks in France, Belgium, Italy, and Luxembourg. This partnership provides investors with maximum diversification in the fund while providing an innovative financin...................... To view our full article Click here
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