BNP Paribas (OTCQX:BNPQF) (OTCQX:BNPQY) expanded further into the fast-growing $1.7T private credit market as it seeks to raise €1B ($1.1B) for a new direct-lending fund, according to a media report dated Wednesday.
The French bank’s latest fund, which targets medium-sized businesses, will offer a unitranche loan combination of senior and junior debt, Bloomberg reported, citing people with knowledge of the matter.
The move comes as firms like Goldman Sachs (GS) and Morgan Stanley (MS) have been trying to establish themselves in the private credit market through their asset management divisions. Last month, Citizens Financial Group (CFG) reportedly held talks with potential partners to expand into private credit.
BNP (OTCQX:BNPQF) is in discussions to use cash from its balance sheet and from outside investors for the fund, the people told Bloomberg.