BNP Paribas Asset Management will acquire a majority stake in Dynamic Credit Group (‘Dynamic Credit’), an Amsterdam-based management company with € 9 billion in assets, specializing in Dutch mortgages and granular loan portfolios.
This transaction will allow BNPP AM’s private debt and real assets (‘PDRA’) activity, which currently has € 11 billion in commitments to clients, to grow significantly, while allowing Dynamic Credit to access a large network of distribution.
The acquisition of Dynamic Credit is part of BNPP AM’s strategy, which aims to accelerate the development of its investment platforms, particularly in the area of private assets. The closing of this transaction is subject to regulatory approval.
Dynamic Credit manages € 9 billion in assets, mainly made up of Dutch mortgages, which the management company acquires through various online platforms, including its own bijBouwe platform. The company offers a full range of services for investors in this asset class, including management of collective portfolios and mandates, reporting services and valuation services. In addition, Dynamic Credit Group’s experience in the origination and management of granular loans allows it to offer investment solutions in personal loans and SMEs, through its diversified lending strategy. Finally, within Dynamic Credit, the LoanClear platform acts as an independent advisory firm specialized in illiquid credit investments; Its services include evaluation, performance benchmarking and transaction support in loan portfolios.
This transaction will accelerate PDRA’s development in Dutch mortgage management.
Given their attractive risk-return profile, low Solvency II capital requirement and low interest rate environment, Dutch mortgages are a highly sought after investment by institutional investors. Therefore, allocations to this asset class are growing steadily, making it a critical investment for many insurers, pension funds and banks, not only in the Netherlands but in Europe in general.
The Dynamic Credit business will be part of PDRA, as it continues to operate independently under the leadership of CEO and founder, Tonko Gast. The latter will report to the board of directors of Dynamic Credit, and will report to David Bouchoucha, CIO and head of PDRA.
Created in 2017, the PDRA investment center operates in three areas: commercial loans, real assets, and structured finance. The activity manages 11 billion euros of commitments with clients and includes a team of 50 credit professionals based in Paris, London and New York.