BNP Paribas Securities Services is to launch a bridge financing service for private equity and real estate funds.
The service provides fund manager clients of the bank with committed credit lines, enabling them to access funding efficiently and respond rapidly to market developments.
“Treasury management for private equity and real estate funds can be complex,” commented Jacques Bofferding, head of alternative financing, BNP Paribas.
“Investment opportunities close rapidly, but accessing capital commitments from investors can take a long time.”
“Add this to the fact that general partners, the funds’ managers, often wish to group capital calls together for efficiency’s sake, and you have a frequent need for financing.”
BNP Paribas’s bridge financing facility is designed to fulfil this need. It is collateralised by the limited partners’ commitment to make the capital contributions, so the fund managers do not need to post fund assets as collateral.
“Private equity and real estate fund managers are under increasing pressure to take advantage of investment opportunities quickly when they arise,” added Hugh Stevens, head of private equity and real estate fund solutions at BNP Paribas.
“Our bridge financing service allows managers to execute their investment strategies quickly and effectively, enhancing their performance.”
The new service is available to new and existing clients of BNP Paribas, covering all types of Europe-based, closed-ended private equity, real estate and infrastructure funds globally.
