The firm said on Wednesday that BNP Paribas Asset Management has agreed to buy a majority position in Dynamic Credit Group, a Dutch asset manager and specialty lender with 9 billion euros ($10.6 billion) in assets under management.
The deal, according to BNP Paribas, will provide Dynamic Credit access to a bigger distribution network. The purchase price was kept under wraps.
The majority of Dynamic Credit’s portfolio is made up of Dutch mortgages, according to BNP Paribas, which have high development potential.
“In the current low-interest-rate environment, Dutch mortgages are a very appealing investment for institutional investors due to their good risk-return profile and low capital charge under Solvency II. Investments in Dutch mortgages are projected to expand steadily in the future “BNP Paribas stated.
In August, the Netherlands’ major policy advisory group predicted that economic growth will be stronger than previously anticipated.
