BNP AM

The sustainable investor for a changing world

US middle market loan strategy

Key features

A diversified portfolio of US middle market loans (MML), which can help to enhance yield and downside protection

A rigorous investment process that emphasises collaboration and ESG considerations

Access to unique sourcing opportunities through BNP Paribas’ financing franchise

Investment philosophy 

Our investment philosophy rests on three key pillars:  

  • Access to origination: access to quality assets through proprietary origination channels is fundamental to achieving performance
  • Rigorous and independent credit processes: credit quality and adequate risk pricing are the main drivers of long-term performance
  • ESG focus: a sustainable approach is essential for long-term investing

Investment process

Our Middle Market Loan Strategy combines the strong underwriting, distribution and risk-management platform of BNP Paribas Leveraged Finance (BNPP LF) with BNP Paribas Asset Management’s (BNPP AM) expertise in credit analysis, portfolio construction and risk monitoring.

Our investment process includes four phases:

  • Origination and underwriting of loans by BNPP LF
  • Independent investment evaluation of loans by BNPP AM, including top-down macro assessments and bottom-up credit analysis
  • Portfolio construction: targeting optimal diversification, position sizing and relative value, with a preference for more sustainable assets
  • Portfolio monitoring using various teams, committees and proprietary systems 

Team and resources

Our Global Loans team is based in New York and Paris. Vanessa Ritter, who has more than 27 years of industry experience, leads the team. They benefit from access to our wider Private Debt and Real Assets (PDRA) investment group, global trading and risk management platform, Sustainability Centre, Quantitative Research Group, Macro Research team and BNP Paribas Group’s financing franchise.