The unit will be one of three new teams which form BNPP AM's Private Debt and Real Asset Investment Group, which will invest in syndicate loans, direct loan and private bonds and be led by David Bouchoucha.

Laurent Gueunier will head the SME lending and structured finance team and will be joined by Philippe Deloffre, head of real estate debt; Karen Azoulay, head of infrastructure debt; and Christophe Carrasco, head of SME lending.

All four will complement the existing teams in place, in particular the structured finance team – headed by Stéphane Blanchoz – which currently manages European ABS assets.

BNPP AM hopes to accelerate its development across the full spectrum of private debt solutions after closing a €500m European SME lending fund in September 2016.

The BNPP AM Private Debt and Real Asset Investment Group will also see the creation of the SME advanced solutions team led by Fabrice Susini.

It consists of an innovative alternative pan-European SME lending platform and will allow BNPP AM the chance to offer clients unique access to scale in the direct lending space by providing an origination engine to ramp up SME loan funds.

The third new team is the global loans team, which is headed by Vanessa Ritter.

The team specialises in leveraged loan financing and manages leveraged loan funds and collateralised loan obligations.

“Private debt and real assets are increasingly becoming an essential part of investors' asset allocation, because they bring steady income and diversification of credit exposure,” said David.

“Within this area we aim to provide value to our clients through a unique ability to source assets by combining the BNP Paribas Group's origination with innovative external origination channels; a robust process based on strong credit analysis, quantitative techniques and ESG (Environmental, Social and Governance); and a broad range of capabilities in order to offer solutions that meet clients' differing requirements.”