BNP Paribas Asset Management agreed to acquire a majority stake in Amsterdam-based lender Dynamic Credit Group, a spokesman confirmed.
The deal will enable the Paris-based money manager to increase its private debt and real assets business by adding Dynamic's €9 billion ($10.7 billion) in assets under management, its Dutch mortgage and loans capabilities, and a global distribution network.
Currently, BNP Paribas AM has €1 billion in Dutch mortgage strategies and about €11 billion across all of its private markets business.
Terms of the deal were not disclosed. The deal will close when regulatory approvals are obtained, the spokesman said.
Dynamic Credit will be incorporated into the private debt and real assets division of BNP Paribas AM under the leadership of David Bouchoucha, CIO and head of private debt and real assets, when the deal closes.
Dynamic Credit's CEO and founder Tonko Gast will report to BNP's board and to Mr. Bouchoucha.
"This partnership marks an important step in the development of our private debt platform and a significant move forward in terms of assets under management, which now totals more than €20 billion of client commitments," Mr. Bouchoucha said in a news release Wednesday. "It also adds an innovative and well-established skill set in the origination, management and servicing of loan portfolios on a granular basis, especially within the mortgage area."
Mr. Gast added in the news release: "The backing of a leading asset manager such as BNP Paribas Asset Management is key for our future development and will allow us to extend our distribution networks across Europe. Dynamic Credit and BNPP AM both share similar values and are fully aligned in terms of fiduciary duties and our approach to client servicing."