Through a strategic alliance and the acquisition of a 10% stake in Caple, BNP Paribas Asset Management is providing an innovative platform to offer alternative credit to European small and medium-sized enterprises (‘SMEs’).
Caple facilitates access to alternative credit for SMEs, working with international institutional investors to address gaps in the funding landscape by offering finance that complements traditional bank loans. A proprietary technology platform supports an efficient end-to-end credit application, combining origination by local partner networks of accountancy and advisory firms with an initial credit assessment by Caple’s experienced credit analysis teams. Caple’s technology also ensures transparency and standardisation of loan terms and documentation. Financing typically takes the form of unsecured loans with a tenor of five to eight years.
Stéphane Blanchoz, Head of SME Advanced Solutions at BNP Paribas Asset Management said “This alliance combines the needs of BNP Paribas Asset Management’s investors with Caple’s expertise as an originator of SME loans. The trend towards disintermediation and the growing need for SME funding creates opportunities for lending platforms, such as SME Advanced Solutions, that can offer alternative credit as a complementary source of finance alongside traditional bank lending. Meanwhile, as institutional investors look to diversify their portfolios and generate higher levels of return than are available in public fixed income markets, they are increasingly attracted to the enhanced yields potentially available from SME lending.”
Dominic Buch, Managing Partner of Caple, said “Caple’s experienced local market credit teams, partner networks and proprietary technology, together with BNP Paribas Asset Management’s credit expertise and institutional distribution capability is a compelling combination. This alliance allows us to effectively address the significant gaps in the European funding landscape by offering access to alternative credit to complement traditional lending models. We look forward to working with the SME Advanced Solutions Platform and our Partners in the accountancy and advisory industries to provide successful SMEs with access to fairly priced business loans at scale, across Europe.”