BNP Paribas is confident that Europe’s private credit market can continue expanding even as US funds face outflows amid investor concerns, citing strong financing needs and regulatory protections across the continent, according to a report by the Financial Times.
The French banking group aims to grow net inflows to its €1.6tn asset management business by €350bn through 2030, driven largely by its alternative assets portfolio, which includes private debt, real estate, and infrastructure.
Sandro Pierri, head of BNP Paribas Asset Management, highlighted that Europe’s private credit market remains relatively small compared to the US and is more insulated thanks to stricter rules designed to protect investors from mis-selling. Pierri added that demand for funding across technology, energy independence, and the green transition is rising, supporting continued growth in private credit.
BNP’s European expansion follows last year’s €5.1bn acquisition of Axa’s investment management arm, positioning it as the continent’s third-largest asset manager. The bank plans to increase assets under management by roughly 5% annually, while revenues from the division are expected to grow around 4% per year. Integration of Axa’s business is ongoing, with a headcount reduction of about 1,200 staff through voluntary departures.
