BlueBay Asset Management Ltd, a leading specialist manager of fixed income and alternative investment products, has launched a Private Lending business designed to facilitate the flow of credit to small and medium sized enterprises (SMEs) in Europe.

The business will capitalise on the ongoing retrenchment from the lending markets by banks and alternative lenders by offering new senior and subordinated loans to European SMEs for acquisitions, capital growth, restructuring and liquidity situations.
 
This new initiative will be headed by industry veteran Anthony Fobel, previously a partner at Och-Ziff Management and head of its European private investment business. It will represent a significant product extension for BlueBay’s existing, 23-strong High Yield and Leveraged Loans business, headed by Anthony Robertson. An initial, closed-end, direct lending fund – expected to be the first in a series of such funds – will be launched in 2012. Existing BlueBay funds are also expected to take advantage of private lending opportunities generated.
 
BlueBay’s CEO Hugh Willis, says: “With the banking system post-2008 continuing to limit European SMEs of credit, BlueBay, together with RBC Global Asset Management, considers this new business initiative to be an important one. Not only does it represent a compelling opportunity for investors, it also provides a fresh source of finance for European SMEs at a time when this is needed. With his extensive experience in building private investment businesses, Anthony Fobel is uniquely qualified to lead this initiative and to develop our presence in this area.”
 
Fobel, says: “BlueBay’s Private Lending business, through its existing and new dedicated funds, will provide much needed capital solutions to European SMEs. While increasingly commonplace in North America, this form of private capital funding is a relatively new development for the European asset management industry. I look forward to helping to build a strong private debt business for BlueBay to complement its existing, market-leading, public leveraged finance business.”