BNP Paribas Asset Management is acquiring a majority stake in Dynamic Credit Group, which specialises in Dutch mortgage investments with €9bn in assets under management.
The deal will increase the size of BNPP AM’s €11bn Private Debt & Real Assets (PDRA) investment division while providing Dynamic Credit with access to its global distribution network.
Dynamic Credit invests primarily in Dutch mortgages, which it originates through its own online platform, bijBouwe, and other channels.
It offers investors portfolio management, collective and single mandates, and reporting and valuation services.
BNPP AM said the risk-return profile and low capital charge under Solvency II meant Dutch mortgages were very attractive to institutional investors in the low interest-rate environment.
Dynamic Credit will be incorporated into PDRA, while continuing to operate as an independent entity under the leadership of CEO and founder Tonko Gast, who will report to its board and to David Bouchoucha, CIO and head of PDRA.
“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 totals more than €20bn of client commitments,” said Bouchoucha.
“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.”
Gast said: “The backing of a leading asset manager such as BNP Paribas Asset Management 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.”