March 17 (Reuters) - BNP Paribas Asset Management said on Tuesday it aimed to double its pre-tax income by 2030. The French lender's investment branch also forecast around 350 billion euros ($401
BNP Paribas plans push into alternative assets despite private credit jitters
BNP Paribas Eyes Growth in Alternative Assets Amid Market Uncertainty
By Mathieu Rosemain
PARIS, March 17 (Reuters) - BNP Paribas is counting on alternative assets, including private credit, to drive growth at its investment arm in the coming years, even as warning signs emerge in those markets, executives at the French bank said on Tuesday.
Ambitious Growth Targets for Alternative Assets
The lender plans to lift alternative assets under management by 28% to 385 billion euros ($444 billion) by 2030, including 85 billion euros in net new money, betting on an area many asset managers see as a strong growth engine.
The group, which manages 1.62 trillion euros, did not give a target for total assets under management by 2030. But it expects 350 billion euros in net inflows over the period, meaning alternative inflows will account for about a quarter of new money. Growth in alternatives is forecast at about 5% to 6% per year, outpacing core active and exchange-traded fund business.
European Opportunities and Geopolitical Factors
"We see more investors considering Europe as an attractive alternative to balance their portfolios. And this is, of course, exacerbated by geopolitical tensions," Isabelle Scemama, head of the alternatives business at BNP Paribas Asset Management, told analysts.
Asset-Based Financing and Market Dynamics
Asset-Based Financing Opportunities
ASSET-BASED FINANCING OPPORTUNITIES
Banks pulling back from some areas of corporate lending are creating new opportunities for asset managers, Scemama said, particularly in asset-based finance, spanning commercial real estate debt, infrastructure debt and consumer loans.
Risks and Scrutiny in Private Capital Markets
The expansion plan comes as private capital markets face growing scrutiny amid concerns over opaque valuations and lax underwriting, which have triggered redemption requests in semi-liquid funds and forced some managers to limit withdrawals.
Still, ratings agency Moody's expects private credit assets under management to exceed $2 trillion in 2026 and approach $4 trillion by 2030.
BNP Paribas’ Position on Market Jitters
Asked about market jitters, BNP deputy COO Renaud Dumora said recent defaults in asset-based lending were mostly fraud-related and concentrated in the U.S.
BNP had no exposure to the loans that defaulted, he said, adding that the $40 trillion asset-based lending market is comparable in size to fixed income and continues to offer broad opportunities.
Financial Targets and Strategic Acquisitions
BNP Paribas Asset Management, which last year bought AXA Investment Managers, aims to nearly double its pretax income to around 1.3 billion euros by 2030, targeting compound annual revenue growth of about 4% and a cost-to-income ratio below 60%, down from 71% now.
($1 = 0.8676 euros)
(Reporting Mathieu Rosemain in Paris and Jakob Van Calster in Gdansk. Editing by Milla Nissi-Prussak and Mark Potter)
