BNP Paribas Asset Management’s Acquisition of a Majority Stake in Dynamic Credit Group

Stek advised Dynamic Credit on the deal.

BNP Paribas Asset Management acquired a majority stake in Dynamic Credit Group, an Amsterdam-based asset manager and specialist lender with EUR 9 billion of assets under management.

The acquisition of Dynamic Credit is in line with BNPP AM’s strategy of accelerating the expansion of its investment platform, particularly within the strategically important area of private markets.  The closing of the transaction is subject to regulatory approval.

Dynamic Credit manages assets of EUR 9 billion, consisting primarily of Dutch mortgages, which it originates through its own online platform, bijBouwe, and other channels.  It offers a full range of services to investors for this asset class, including portfolio management through collective and single mandates, as well as reporting and valuation services.  Beyond Dutch mortgages, Dynamic Credit has built on its expertise within the origination and management of granular loan portfolios, to source personal loans and SME loans for its Diversified Loan Fund.  Within Dynamic Credit, LoanClear serves as an independent advisory firm focusing on illiquid credit investments.  Activities include valuation services, portfolio performance benchmarking and portfolio transactions.

This deal offers PDRA the opportunity to accelerate the development of its Dutch mortgage capability.  Given their attractive risk-return profile and low capital charge under Solvency II, Dutch mortgages are a very attractive investment for institutional investors in the ongoing low interest rate environment.  Investments in Dutch mortgages are expected to continue to grow steadily.  This market represents a core investment for insurers, pension funds and banks in the Netherlands, as well as for investors more widely across Europe.

Dynamic Credit will be incorporated into PDRA, while continuing to operate as an independent entity under the leadership of CEO and founder Tonko Gast, who will report to its Board and to David Bouchoucha, CIO and Head of PDRA.

The Stek team included Pamela Bührman, Vincent van der Gaag, Eelco Bijkerk (Picture), Maarten van der Graaf.

Involved fees earner: Eelco Bijkerk – Stek; Pamela Bührman – Stek; Vincent van der Gaag – Stek; Maarten van der Graaf – Stek;

Law Firms: Stek;

Clients: Dynamic Credit;

Author: Federica Tiefenthaler