Private markets

Why private markets

Driven by fewer higher-yielding opportunities in public markets following the global financial crisis, private markets have become a mainstay of institutional portfolios globally.

In today’s volatile environment this challenge persists, reinforcing the attractiveness of private markets which typically offer higher and more stable income streams than traditional fixed income. Certain asset classes also benefit from features such as floating rates and secured loans that can enhance portfolio protection in inflationary environments.

Our platform

BNP Paribas Asset Management has a long track record in sourcing and managing private debt solutions. Our dedicated platform, launched in 2017, manages over €20bn of assets across the private markets universe.^[1]

The team includes more than 100 seasoned portfolio managers and credit specialists working in Paris, London, New York and Amsterdam. Together, they provide clients with access to an extensive range of multi-asset strategies. 

Underpinning our strategies are three core beliefs (below). Adherence to these is fundamental to generating long-term sustainable investment returns.

Our strategies

Our strategies cover a broad spectrum of the private markets universe including corporate loans, real assets and structured finance. We continue to enhance and expand our range to meet evolving client needs, most recently with the inclusion of Dutch mortgages and private equity.

With sustainability at the core of how we invest, ESG criteria is fully integrated into each of our private market strategies.

References

^[1] BNP Paribas Asset Management, April 2022

Disclaimer

The value of your investments may fluctuate. Past performance is no guarantee for future returns.

Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

BNP Paribas Asset Management seeks to integrate environmental, social and governance (“ESG”) factors into all of our portfolios as a means to mitigate certain short, medium and long-term financial risks, identify better long-term investments, and encourage more responsible corporate behaviour. We will never subordinate our client’s interests to unrelated objectives. Certain issuers and industries are excluded from our actively managed portfolios based upon our view of their ESG performance and risk profile. As a result, we may pass up certain opportunities when these excluded issuers or industries are in favour. Due to significant gaps in disclosure regimes around the world, we may need to rely upon voluntary disclosures by issuers, which are often not audited. We therefore may not have consistent access to complete, accurate or comparable information about the ESG performance of our holdings. Please consult the applicable offering document for more information about the specific ESG strategy employed by each investment strategy since a given strategy may not have specific ESG guidelines, and investments are not limited to securities that are ESG compatible.