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SME Alternative Financing

 

Investing in sustainable growth

The financing of UK Small and Medium-sized Enterprises (SMEs) has changed considerably since the global financial crisis and looks set to evolve further. We believe there is a sizeable, yet under-served, segment of real SMEs in the UK market, who require financing to achieve their goals. At BNP Paribas Asset Management we want to make a difference by providing our investors with sustainable value, while contributing to a better world for future generations. This is why we are investing in the sustainable growth of UK SMEs via our originate-to-manage platform.

SME alternative financing infographics

Our SME Alternative Financing platform is an innovative investment solution offering exposure to UK SME’s, a largely untapped opportunity for investors, as well as German and Dutch loans. Our platform sources SME loans, via multiple origination channels, for distribution to institutional investors such as pension funds and insurance companies who are seeking to diversify their portfolios and generate higher levels of return than are available most in public fixed income markets.

We have invested in technology and systems to create a cutting-edge platform. All backed by an A-rated bank committed to the real economy. We combine quantitative and qualitative assessments to ensure high credit quality, looking at profitability, turnover and ESG factors. Our SME Alternative Financing team is developing key differentiated origination partnerships able to raise loan volumes, support credit analysis of the end-to-end lending process. We follow a comprehensive investment process (from origination to monitoring) designed to address a high volume of credit applications and to perform a close monitoring of the underwritten loans.

SME: Small to Medium Enterprise Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved. Past performance or achievement is not indicative of current or future performance.