with BNP Paribas Asset Management
In March 2022, BNP Paribas Asset Management (BNPP AM) acquired a majority stake in Dynamic Credit. Dynamic Credit will become part of BNPP AM’s Private Debt & Real Assets (PDRA) investment division, while continuing to operate as an independent entity under the leadership of CEO and founder Tonko Gast.
About BNPP AM
BNPP AM is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable investment returns for its clients, based on a unique sustainability-driven philosophy. BNPP AM’s investment capabilities are focused around five key strategies: High Conviction Strategies, Private Debt & Real Assets, Multi-Asset, Quantitative & Solutions (MAQS), Emerging Markets and Liquidity Solutions, with investment processes incorporating quantitative and fundamental analysis.
Established in 2017, PDRA operates across three areas: corporate loans, real assets and structured finance. It currently manages EUR 11 billion of assets committed by clients and has a team of 50 credit professionals based in Paris, London and New York.
Strategic importance partnership for BNPP AM
The acquisition of Dynamic Credit is in line with BNPP AM’s strategy of accelerating the expansion of its investment platform, particularly within the strategically important area of private markets. This deal offers PDRA the opportunity to accelerate the development of its Dutch mortgage capability. Given their attractive risk-return profile and low capital charge under Solvency II, Dutch mortgages are a very attractive investment for institutional investors in the ongoing low interest rate environment. Investments in Dutch mortgages are expected to continue to grow steadily. This market represents a core investment for insurers, pension funds and banks in the Netherlands as well as investors more widely across Europe.
David Bouchoucha, Head of PDRA at BNPP AM: “This partnership marks an important step in the development of our private debt platform and a significant move forward in terms of assets under management, which now total more than EUR 20 billion committed by clients. 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 look forward to engaging with our clients regarding the new opportunities this partnership will bring in terms of adding value to their private debt portfolios.”
Strategic importance partnership for Dynamic Credit
The partnership with BNPP AM provides Dynamic Credit with access to a large and global distribution network for its investment products, and allows us to further build on our existing skillset of originating and managing loan portfolios.
Tonko Gast, founder & CEO of Dynamic Credit: “The backing of a leading asset manager such as BNPP AM is key for our future development and will allow us to extend our distribution networks across Europe. Dynamic Credit and BNPP AM both share similar values and are fully aligned in terms of fiduciary duties and our approach to client servicing. Sustainability and innovation are strategic priorities across both firms, which we will continue to reinforce, particularly in relation to private markets.”