BNP Paribas Asset Management (BNPP AM) is set to acquire a majority stake in Dynamic Credit Group in a bid to strengthen its investment platform and private debt portfolio.
The transaction, whose financial details are unknown, is expected to close following regulatory approvals.
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Dynamic Credit is an Amsterdam-based asset manager and specialist lender managing €9bn in assets under management (AuM).
The assets, which majorly consists of Dutch mortgages, is originated by the firm through its own online platform, bijBouwe, and other channels.
It offers a spectrum of services to investors for this asset class, including portfolio management through collective and single mandates.
In addition, reporting and valuation services are also provided by the firm.
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By GlobalDataApart from mortgages, Dynamic Credit also focuses on the origination and management of granular loan portfolios to sources personal loans and SME loans for its Diversified Loan Fund.
LoanClear, an advisory firm within the group, specialises in illiquid credit investments.
The unit provides services such as portfolio performance benchmarking, valuation, and portfolio transactions.
Deal rationale
This deal will allow BNPP AM’s Private Debt & Real Assets investment division (PDRA) to significantly grow its asset base. It currently manages €11bn of client commitments.
Established in 2017, this division operates across corporate loans, real assets, and structured finance segments.
It will enable PDRA to enhance the development of its Dutch mortgage capability.
Dynamic Credit, which will be incorporated into PDRA, will benefit from access to a large and global distribution network through the BNP AM partnership.
Following the transaction, the Dutch asset manager will continue to operate as an independent entity under the leadership of CEO and founder Tonko Gast.
Gast will report to PDRA head and CIO David Bouchoucha as well as Dynamic Credit board.
Comments
Bouchoucha called the partnership ‘a significant move forward in terms of assets under management’.
He said: “It also adds an innovative and well-established skillset in the origination, management and servicing of loan portfolios on a granular basis, especially within the mortgage area.
“We are looking forward to engaging with our clients regarding the new opportunities this partnership will bring in terms of adding value to their private debt portfolios.”
