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The investment management arm of BNP Paribas is to launch a vehicle offering loans to the UK SME market.
BNP Paribas UK SME Debt Fund 1 will invest in senior loans to SMEs with an annual turnover of less than £50m, which are originated via BNP Paribas Asset Management’s SME Alternative Financing platform.
The bank added the platform uses proprietary big data technology and its balance sheet and infrastructure to provide a source of funding to SME clients.
BNP Paribas Asset Management is the investment management arm of BNP Paribas, and as at March 31, 2018, manages €568bn (£506bn) of assets.
Stéphane Blanchoz, head of SME alternative financing at BNP Paribas Asset Management, 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. We are targeting SMEs between these two market segments, where there are opportunities for businesses to contribute to UK GDP growth, but where sustainable funding solutions are limited.”
Credit Strategy is hosting the Lending Summit at the Hilton London Bankside on November 6, bringing together three conferences that centre on alternative finance, commercial finance and mortgage lending. For information on speaking opportunities, delegate tickets or for sponsorship enquiries call 020 7940 4835 or visit the Lending Summit website.
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