BNP Paribas Capital Partners has held a final close of its European debt opportunities fund of funds on €134 million.
The vehicle, European Special Opportunities Debt Fund, was launched in 2018 and provides institutional investors with exposure to discounted private debt markets in Europe. Investors include European institutions and family offices and the fund meets the capital requirements of Solvency II.
The FoF is closed-ended with a lifespan of seven years and an average duration of 30 months. It aims to offer investors an internal rate of return of between 9 percent and 12 percent.
Investments will be in funds holding corporate debt from mid-sized companies that have experienced some difficulties or are excluded from traditional finance channels. Managers selected by the FoF will be those that target corporate debt and loans that are either performing or non-performing and are primarily tier one. Debt may be acquired on the secondary market or directly from banks.
Six investments have been made so far out of an expected total of seven, representing 90 percent of the vehicle’s capital. It is expected the investment phase will be completed by the end of the summer with committed funds invested sitting at 20 percent with capital deployment expected to accelerate in the coming months, according to BNP Paribas Capital Partners.