BNP Paribas Launches Bridge Financing Service For Alt Funds

BNP Paribas Securities Services has launched a bridge financing service for private equity and real estate funds, allowing fund manager clients to gain funding in response to market developments.
By Joe Parsons(2147488729)
BNP Paribas Securities Services has launched a bridge financing service for private equity and real estate funds, allowing fund manager clients to gain funding in response to market developments.

The service provides clients of the bank with committed credit lines, enabling them to access funding more efficiently.

“Investment opportunities close rapidly, but accessing capital commitments from investors can take a long time. Add this to the fact that general partners, the funds’ managers, often wish to group capital calls together for efficiency’s sake, and you have a frequent need for financing,” says Jacques Bofferding, head of alternative funding, BNP Paribas Securities Services.

According to the custodian, the service is collateralized by the limited partners’ commitment to make capital contributions, providing fund managers freedom from posting fund assets as collateral.

“Private equity and real estate fund managers are under increasing pressure to take advantage of investment opportunities quickly when they arise,” adds Hugh Stevens, head of private equity and real estate fund solutions, BNP Paribas Securities Services. “Our bridge financing service allows managers to execute their investment strategies quickly and effectively, enhancing their performance.”

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