BNP closes €361m CLO fund

The vehicle, which is the fourth of its type raised by BNP Paribas Asset Management, will be managed by the New York- and Paris-based global loans team.

BNP Paribas Asset Management, the investment management arm of BNP Paribas, has closed BNPP AM Euro CLO 2017, a €361 million securitisation vehicle that will invest in a diversified portfolio of syndicated leveraged loans to European corporates.

The fund is the fourth new generation CLO closed by the firm, two of them in Europe and the other two in the US.

BNPP AM CLO 2017 will consist of a minimum of 95 percent secured senior loans with the balance made up of unsecured loans, second-lien loans and mezzanine loans. Six classes of notes issued by the vehicle are rated by Moody’s and Fitch Ratings with varying rating levels to meet different risk/return objectives.

Structured and syndicated by BNP Paribas Corporate and Institutional Banking, all tranches have been placed with institutional investors in Europe and Asia. Part of the issue was retained by BNPP AM, including the regulatory vertical risk retention required to meet the EU’s Capital Requirements regulation.

The CLO will be managed by BNPP AM’s 20-strong global loans team, which is based in New York and Paris and headed by Vanessa Ritter. It focuses on leveraged loan financing through managed accounts and CLOs as well as mid-market corporate financing.

The global loans team is part of the Private Debt & Real Assets investment group that was created in June this year and which also covers SME lending, structured finance, real estate debt and infrastructure debt. It has 50 professionals altogether.